There are many factors to consider in finding property for your business. One of the most important factors, and this is the first one I suggest considering, is researching zoning ordinances.
What are zoning ordinances? Zoning ordinances are municipal-level laws that dictate permitted and prohibited uses for individual lots (real estate). Sounding important? Imagine buying real estate, or leasing real estate, and discovering afterwards that there’s a law prohibiting your type of business or some part of your business operations. Not good. This is vital information to know early in your planning and property search.
Zoning ordinances will define or categorize real estate uses like commercial, business, residential, agricultural, industrial, and other names. Since zoning ordinances are crafted by municipalities (e.g., cities, counties), the terms will vary. Within each of these categories will often be additional details regarding uses. For example, a zoning ordinance for a lot (i.e., a specific piece of land with or without structures) that prescribes commercial use will often specify forms of commercial use. This could be specific types of businesses like restaurants, retail, car washes, or office spaces. The zoning ordinance may list prohibited uses like providing vehicle repair at the car wash, open storage, or education facilities. Still sounding like important information to know in advance of searching for and definitely before buying or leasing property?
Some zoning ordinances also address matters like displaying signage, hours of operation, products and services and operations, and much more.
Understandably, it is very difficult for crafters of zoning ordinances to identify every possible use that may be sought by you as business owner. You will likely find zoning ordinances that don’t fully address the details of your business. An inquiry to the zoning office to discuss the details of your desired use can be very helpful.
Occasionally you may notice that some uses are listed as “uses by exception” or “variances” – some other terms may be used. These uses may be permitted subject to an approved request. These requests typically have to be submitted by the owner to the zoning board, often referred to as a zoning board of appeals. Submitted by the owner…you’re already realizing the risk here. You could buy the real estate, submit your application for use, and possibly have your application denied. When you identify real estate to lease, you can work with the owner to submit an application for your desired use and obtain approval as a contingency to you signing a lease.
There are many factors to consider when searching for and selecting real estate for your business. Finding property for your business is more than just finding property. It is finding the right property for your business. Researching zoning ordinances should definitely be at the top of that list.
More information is provided in the following video. There’s also more information regarding real estate planning and real estate transactions at https://veteranrealty.us/good-info-to-know/.