LPC Trends: Strategic “Land Banking”

LPC Trends: Strategic “Land Banking”

In a recent edition of Z-News, Ziegler published a compelling summary of land banking trends and strategies for LPCs.  Similar to a trend seen during the great 2008 recession, some organizations are finding it advantageous to purchase and hold parcels of land as strategic long-term investments, even if a development or construction project is not immediate under consideration. This can be for a variety of reasons: an organization plans to expand, but wishes to wait until the current, inflating construction costs recede, or wishes to purchase a desirable tract of land in today’s favorable market, with the plan to either develop or sell the parcel when the land appreciates in value in the coming years. The article examines four reasons why an LPC might bank land: campus expansion, growth in a desired market/ region, a defensive move to block potential competitors, or being a first mover in what will become a desirable area that is yet undeveloped. How to bank the land is also discussed; working with knowledgeable business partners, experts and board members may bring previously unknown opportunities to the forefront, and/ or staying attuned to land acquisition opportunities in the local community so that an organization can move quickly when the land becomes available. Incorporating the financial strategy for land banking into capital planning is emphasized, so that an organization can be nimble when an opportunity arises. Land banking should be a long-term strategy, and not an “impulse buy;” designating the right people and processes to make decisions about land purchases is also key.  




Alyssa Odegaard – Vice President, Public Policy 
cell: 206-948-2279

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March 9, 2023