After reviewing zoning maps and engaging direct mail marketing to land owners, I located the one site that I feel is best suited for self storage in my subject market place. The site will require a use permit from the City and being 32 acres is size, a minor subdivision to break off 7+/- acres. The use permit and sub-division will take approx 6-9 months to complete. I have spoken directly with the owner and he will consider splitting off 5-10 acres. This is the premier self storage site surrounded by residential on two sides and main commercial arterials on the others. There is no additional land close to the subject site that would allow for future competition.

Should I go with an option agreement or standard purchase contract with long escrow language to tie up the property while I secure the entitlements and subdivision? I am nervous about the sellers ability to find a way out of the deal during the process? i.e. the seller decides to not sell after the value of his land has been greatly improved. Is there some advice out there for these type of scenarios besides "consult your real estate attorney/broker?" I’m sure developers work these type of scenarios frequently and any adivice about the how to procced would be welcomed. Anyone have some example contracts/option agreement? I know contracts can greatly vary between state to state and I am located in CA.

Once the property get's tied up I'll call in a third party to determine feasibility. If acceptable, start the process of sub-divding and entitling for self storage. I welcome all comments/ideas and suggestions.