When a single family home is in an industrial zone.. who is the buyer?
In an older community like Fillmore and Santa Paula, located in the Santa Clara Valley of Ventura County, it is common to find industrial and commercially zoned properties adjacent to residential areas. It is equally common to find older homes on properties that have been up-zoned to higher uses.
When its time for the family to reallocate these assets, there is a challenge as to how to price it. The industrial/commercial zones are attractive to small business owners but financing is more difficult. Additionally, it is appropriate for the smaller size parcels to be priced reflecting the more intense use, but the buyer pool becomes smaller.
It’s a waiting game in many respects as larger developments in the area begin to appear. This activity heightens interest in the area and all ships rise with that tide, but the practical aspect is “how long”? Family members need to consider the highest and best use in the short run and evaluate how long the wait will be for the existing zoning to catch up.
If you are a property owner out of the area, be sure to connect with a local broker who can prove local market knowledge.