Why developers are targeting pre-approved land in America’s next hot markets
Kaufman Development | Kaufman Family Office
It’s no secret—construction costs have gone one way since the pandemic: up. Factor in the latest tariffs from President Trump, rising labor expenses, and tighter credit conditions, and developers are facing one of the most challenging pro formas in a decade.
But while many wait out volatility, others are finding an edge: shovel-ready and “double-ready” sites.
These are parcels that come fully entitled, sometimes with infrastructure in place and approvals already granted. In this environment, that means serious time and cost savings—and in some cases, hundreds of thousands off the pre-construction budget.
Why Shovel-Ready Sites Are Gaining Ground
Shovel-ready sites aren’t new. But demand for them is spiking—particularly in high-growth, lower-cost markets where developers want to move fast and control risk.
Instead of waiting 12 to 24 months for entitlements and permits, these sites can be under construction in weeks, not years.
For private equity funds, family offices, and build-to-rent sponsors looking to deploy capital efficiently, these sites check every box:
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Less regulatory risk
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Predictable timelines
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Lower holding costs
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Quicker path to NOI
Where the Action Is Now: 11 Markets to Watch
The big institutional dollars have spent the last few years chasing shovel-ready land in places like Miami and Austin. But today’s next wave of opportunity is playing out in more strategic metros:
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Kansas City, MO – Logistics-driven growth, healthy job creation, and a city government that’s leaning into development.
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Reno & Las Vegas, NV – Nevada’s business-friendly climate plus an influx of Californians is fueling demand for multifamily and mixed-use.
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Raleigh, NC – Strong tech employment, top universities, and population growth make entitled land extremely attractive.
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Northwest Arkansas – Walmart and Tyson have quietly built one of the most resilient economies in the South.
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Indianapolis, IN – Midwestern stability, with a growing downtown core and aggressive infrastructure investments.
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Denver, CO – Entitlement risk is rising in Denver proper, so entitled suburban parcels are in high demand.
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Boise, ID – One of the fastest-growing cities in the country. Permits are backlogged, making shovel-ready gold.
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Salt Lake City, UT – Clean tech, manufacturing, and population growth are driving developer urgency.
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Orlando, FL – Still one of the fastest-growing metros. Finding pre-approved land here gives developers a two-year head start.
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Washington, D.C. Metro – Especially in Northern Virginia and Montgomery County, pre-entitled land is commanding premiums.
What Developers Are Watching For
Not every pre-approved parcel is created equal. Developers are being choosy.
In many markets, the economics for structured parking simply don’t pencil—especially in second-ring suburbs where rents can’t support the cost. Surface lots or podium garages remain the preferred route unless rent levels justify the capex.
Meanwhile, demand is highest for projects that target:
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Build-to-rent neighborhoods
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Workforce housing near job centers
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Townhome or condo infill with for-sale potential
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Mixed-use projects with retail frontage already approved
The Bottom Line
In this cycle, time is money—and risk is expensive. That’s why shovel-ready sites have become the new battleground for developers looking to preserve margins and accelerate returns.
As more capital flows into second-tier metros, and as local governments compete to attract new housing and industry, expect to see even more of these “ready-to-go” sites change hands.
Smart sponsors are locking up these assets now—before the next wave of institutional capital prices them out.
Interested in co-investing or sourcing shovel-ready sites in these markets? Get in touch at [email protected]