With its diverse population and abundant resources, Illinois has long been a land-rich state. But even with its rich history, the state has not been immune to rising costs and regulatory hurdles that have dragged on returns on investment property. Nevertheless, by conducting thorough due diligence and partnering with real estate professionals, land can continue to be a solid investment in the future.

As of late, a lot of Illinois land for less is selling for less than what it was worth just a few years ago. This is partially a result of the ongoing trade war between the United States and China, but it also has to do with the state’s own internal issues.

One of those issues is the way the state sells its land. Currently, the state does not have to provide the public with any information about what it plans to do with the land prior to selling it. This lack of transparency is especially problematic when the land in question is in a major urban area. Such was the case when the Damen site, a former Nabisco bakery and grain silos that sit along the Chicago River, was recently sold.

The sale was done without any input from city residents or anyone else who might have a stake in the property’s future use. While this may be an understandable move for the state, it is not a practice that is fair to other landowners.

Land prices vary greatly depending on a host of factors including location, soil quality, and agricultural usage. On average, farmland in Illinois sells for about $7,500 an acre. But prices can go up to over $10,000 an acre for land close to cities.

Illinois has a strong commercial property market as well, with office and industrial buildings experiencing robust occupancy rates and rents. This strength is fueled by continued job growth in industries like healthcare and professional services.

However, the state is still trying to get its arms around a number of challenges. For example, the state has a commitment to protect 30% of its land and water resources by 2030. But only about 4% of Illinois’ land has been formally protected to date.

The state has been trying to increase its acreage by acquiring property from local governments and selling it to private citizens. It’s a process that takes time and money. But it’s not enough to meet the 30 by 2030 goal, according to a task force.

Another challenge is the high property taxes in Illinois, which can eat into investment profits on investments property. Plus, there’s the regular maintenance cost of owning land, such as mowing and irrigation. And of course, commodity prices often fluctuate, affecting the incomes of farming properties. However, by focusing on opportunities in promising real estate markets, performing rigorous due diligence and working with a knowledgeable custodian to invest through an alternative asset fund, Illinois land can deliver solid returns over time. Just be sure to stay patient and have realistic expectations about your return.