In the wake of redevelopment dissolution, it is more important than ever for cities to strategically leverage one of the few tools they have to support economic growth and fiscal health: land assets.
In order to obtain maximum value from the land and generate sustainable revenues to the city’s general fund, cities need to compare the net present value (“NPV,” i.e., today’s dollars) of potential lease revenue to the estimated sales price of properties. When analyzing NPV (the way we convert future payments into today’s dollars) for a lease, one must consider both the stream of payments and the residual value of the property after the lease terms have expired.
RSG has the expertise and experience to help cities determine whether a long-term lease or sale would be the most lucrative approach. With three licensed real estate brokers on staff, RSG can assist cities with lease negotiations and property sales. Contact us today for help maximizing the benefit of your city’s land assets.
Written by Hitta Mosesman, a Principal at RSG, and Brett Poirier, an Analyst at RSG