Navigating CRE Zoning

“It’s easier to ask forgiveness than it is to get permission” is not a good strategy when it comes to Commercial Real Estate’s Municipal Zoning Codes. There is nothing worse than assuming that a use is permitted, fit out your new locations use and then a Code Enforcement Officer visits your location only to find out it is not a Permitted Use.

Why are there so many different Zoning Ordinances?

Virtually all municipalities have a master plan that identifies where there can be residential homes, apartments, and townhouses. Likewise, the plans also include what types of industries can be used in various “zones”.

Typical examples of commercial zones will include retail and office zones within close proximity to residential neighborhoods that can support the local resident’s needs. Think Grocery Stores, Dry Cleaners, and Restaurants. For office uses, think Doctors, Dentists, Real Estate, and Lawyers as good examples.

In the outlying areas, you will find more Industrial Zones that include Manufacturing, Warehouse, and Outdoor Storage that will help bring businesses to their communities.

What is included in each Zone?

Regardless of if it’s a residential or commercial zone, they will include what size property can be built there including height, square footage. impervious ground coverage and set-backs.

Each zone typically will also include what are the Permitted Uses. This is not to be confused with any Deed Restrictions that may exist in an HOA or COA development.

When should you verify that your use is permitted for your business?

Definitely before any Leases are executed. A good example is Office zoning, typically they differentiate Professional and Medical uses because of the amount of parking, utilities and traffic each use demands. Another example is Retail that also includes Restaurants that have different requirements such as ventilation and waste management than a typical retail store. A good model is to never assume the use is permitted until the municipality approves it.

How do I verify if my use is permitted?

Most municipalities, both small and large, are happy to work with prospective new businesses coming to their cities. Business owners can go directly to the Planning and Zoning Department and let them know what your intended use is and let them know if it is permitted or not. They will then provide you with what is required to submit for final approval. Once this is complete, all of the other departments (e.g. Fire Marshall, etc..) will then be informed.

Another option is to hire a Municipal Zoning Attorney who specializes in applying for you and will also advise if they thinks a viable use or if would require a variance.

Summary

Municipalities are very difficult to work with if they find a business that does not conform with their zoning ordinances. It is much easier to have them as your partner in obtaining the approval in advance.