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Updated over 5 years ago,
Inherited small commercial lot, not sure what to do with it.
My father, two sisters and I have recently inherited a vacant small commercial lot (0.23ac) in Tennessee near a growing interstate exit and are not sure how to maximize cash flow with it. We currently rent it two months out of the year to a fireworks stand at $1500/mo., but that barely covers the annual property taxes. The property itself is sharing a parking lot with a McDonalds and we have non-compete agreement with them as well, covering food and beverage sales. We originally wanted to put a Starbucks, but found out they are not a franchise and we would have to "invite" them to lease the lot. Besides that, we weren't aware of the non-compete agreement so we couldn't do it anyway. We've thought of a paper or illuminated billboard, but learned that the city limits extend up to the interstate and advertising billboards are not permitted within the limits. We've considered a small duplex/triplex for leasing to commercial tenants, but I'm thinking the building codes will require a certain number of parking spaces and I don't believe there is enough room to add the required spaces. Considered a Redbox stand and some others, nothing seems to be the silver bullet.
Any creative ideas on what we could do with this piece of commercial property?