Commercial Acre

Commercial Acre Definition

Commercial acre is the area that remains in a commercial real estate development project after improvements have been made including but not limited to such improvements as curbs, sidewalks, and gutters.

Explanation

Since commercial developments typically will come with requirements to improve surrounding public spaces, such as adding sidewalks and curbs and gutters, the industry compensates for these improvements.

It allows for a smaller net space to still be considered a full acre plot.

For example, a real estate developer purchased a plot of land that was 400 yards x 10 yards which comes out to 4000 sq yards.

This is smaller than his residential acre lot which measured out to 4840 sq yards. But he still is proud to own his own commercial acre.

For all raw land developers it is vital to understand how commercial land differs from residential land developments.

They need to know what net area will be left over after improvements to determine how much usable space is available at what price.