If you are about to invest in commercial real estate, it is important to be clear about the zoning laws for the properties you are considering. You need to be sure that you can use a property you buy for the purposes you intend, and being in the wrong zone could make that impossible.
Local authorities use zoning to exert a level of control over how the area develops. Without it, you could end up having late-night bars preventing residents from sleeping, factories belching smoke across primary school playgrounds and a quiet residential street suddenly being filled with trucks going to and from a new warehouse.
Can you do what you intend in the property’s zone?
Let’s say you are looking at buying a building and developing it into residential apartments. You’d need to make sure the zone is a residential one. Or, if you wanted to site a warehouse on a piece of rural land, you’d need to check that the zoning would allow it and is not solely reserved for agricultural purposes.
What if the zoning does not fit your needs?
If the current zoning does not permit your warehouse plan, then you could apply for a zoning variance. The planning authorities would want to see a strong argument as to why they should make an exception to the rule for you.
What if someone else has already been given a variance?
You might assume that getting a variance to build a warehouse is a given because someone else has done similar across the road on what was also once agricultural land. However, zoning variances are given individually. While one already having been issued for someone close by may strengthen your argument, it does not guarantee you will get one.
By learning more about the current zones in the area you are looking at, you can make wiser choices when investing in commercial real estate.