Residual Land Value

Residual Land Value in Commercial Real Estate

Residual Land Value in Commercial Real Estate

Residual land value is a metric that equals the value of the land, after all costs of developing have been subtracted. For example, if an investor purchased land for $500,000 and spent $1 million building an office park, which they then sold for $2 million, the residual value of the land would be $500,000.