COMMERCIAL REAL ESTATE INSIGHTS · By Dennis H. Goodhart
Could unused industrial land generate long-term rental income with little or no capital investment?
If you own industrial property with unused or underutilized land, you may be overlooking a potential source of substantial long-term rental income.
As demand for electricity grows, energy companies are seeking suitable locations for Battery Energy Storage Systems (BESS). These installations store electricity and release it when needed, helping stabilize the electrical grid and meet changing demand.
Unlike conventional power-generating facilities, battery storage installations require no ongoing fuel deliveries, chimneys, or large cooling systems. Their relatively compact footprint makes them suitable for certain industrial and commercial locations, particularly those near existing electrical infrastructure.
AI-generated concept illustrations of unused land and a possible battery energy storage use. Not photographs of an actual project; site suitability, development and financial arrangements vary.
Here’s what you as a property owner should know:
- Industrial zoning is generally required for the opportunities discussed here.
- The opportunities I’m currently pursuing generally require at least 10,000 square feet of usable land. Larger sites are also desirable.
- The property should have suitable road access and be near electrical infrastructure capable of supporting the installation.
- Long-term leases can provide a potentially predictable source of rental income.
- The developer will typically handle permitting, site improvements, installation, operation, and maintenance, and provide appropriate insurance and liability protections, as specified in the negotiated lease.
These arrangements may allow owners to generate income from unused portions of their property without selling the land or having to finance the installation or equipment.
Not every property will qualify, and financial opportunities vary considerably by location. However, for the right property, a battery storage lease could represent an attractive alternative to leaving land vacant.
Could Your Property Qualify?
Before you dismiss that vacant land as having little income potential, let’s take a closer look.
You may have an opportunity to generate substantial long-term rental income from land that is currently unused or underutilized.
I am currently looking for industrial property in New York, New Jersey, and Massachusetts. Contact me for a preliminary discussion about your property’s location, available land, and potential suitability for a battery energy storage lease.
I can help you explore the opportunity, evaluate potential proposals, and coordinate appropriate representation and lease negotiations in accordance with applicable state licensing requirements.
Your property may have income potential you haven’t considered. Let’s find out.
Dennis H. Goodhart | Commercial Real Estate
DHG Realty Group | Strategic Real Estate Advisory