WORTH?

The concept of performing "due diligence" has been around for a long time...we're talking at least 600 years! It was certainly common practice in early America, at least 100 years before U.S. lawmakers included the phrase in The Securities Act of 1933. Most of us are familiar with real estate, financial, and legal due diligence. What about pavement due diligence? Is that even a thing?

At some point in time, your property's native soil was converted to pavement infrastructure through a series of unique processes (including, but not limited to: land & geotechnical surveys, plans designs & engineering, land clearing, excavation, earthwork, soil stabilization, compaction, and asphalt or concrete paving). These processes were time-consuming and expensive; I consider them an investment. There is residual value in all pavement infrastructure as long as it is in good condition.

Speaking of condition...pavement infrastructure condition is a complex subject with many considerations; we will keep it simple. I am referring to the 12-inch area from the surface of the pavement to the material below (depth). I am assuming there are 2-to-3 inches of asphalt or 4-to-6 inches of concrete. It is in good condition if less than 25% of the total area has cracking and/or there is little-to-no exposed aggregate. Age can also be a factor.

And now, the moment you've all been waiting for...what is a good dollar amount to estimate the value of 12 inches of sound pavement infrastructure? $8 to $12 per square foot for asphalt. $15 to $20 per square foot for concrete. If you're not impressed with a conservative range and you just want a number, fine...then let's just say $10 per asphalt square foot and $18 per concrete square foot.

If you multiply these values by the square footage of your pavement, you will have a general idea of what your pavement is worth. I believe, generally speaking, that pavement infrastructure is massively undervalued...especially when property owners are considering acquisition, maintenance, or rehabilitation (which we will discuss in an upcoming article, stay tuned).

If you agree or disagree, feel free to leave a comment below!

Justin Dooley 07/28/23