How do you find out what is more profitable on the lot/land?

[Adrian Macias]

Can anyone help me with learning how to calculate what type of unit/units would be more profitable? I own a commercial lot and have different ideas on what I want to develop. I debate on mixed housing unit. Multi family unit, or build 4 houses on each lot. I am sure there are ways to calculate what the best bang for my buck will be. Thanks and if any investors are interested the lot is located minutes away from downtown Dallas.

[David Friedman]

The question you are asking is known as the "Highest and Best Use" in the commercial real estate industry.

@Karen Margrave has a ton of experience in new development. I would reach out to her or look at her previous posts to begin your research.

In general, you should understand what zoning allows and go from there. Demand would be your next step.

I have a friend who owns a shopping center in Yucaipa, CA. He handed out questionnaires at all of the big box grocery stores in the city to find out what the city is missing and what there is demand for. Apparently, everyone wanted a Dairy Queen. He now owns and has become very successful by operating the Dairy Queen. Do your research because once it's built, it's very hard to change direction.