Before You Sign the Lease: A Business Owner’s Guide to Land Use & Zoning
Local governments use land use and zoning regulations to determine how properties may be developed, what activities may take place on them, and what businesses are permitted to operate within particular zoning districts. Failing to understand those regulations before signing a lease leads to unexpected costs, approval delays, code violations, or even the inability to operate the business as planned.
What Is Land Use and Zoning?
Land use and zoning regulations are local rules that govern how property can be used and developed within a city, county, or municipality. At a broad level, properties are generally designated for uses such as:
- Residential: homes, apartments, townhomes, and other residential developments.
- Commercial: offices, retail establishments, restaurants, hotels, and other commercial activities.
- Industrial: manufacturing, processing, warehouses, and other uses that may generate greater levels of noise, traffic, or other impacts.
However, these broad categories are only the starting point.
Each city and county may establish numerous zoning districts, and each district can have its own list of permitted, conditional, prohibited, and accessory uses.
Due Diligence Should Come Before the Lease
Land use and zoning due diligence should be part of the decision-making process before you commit to a property, not after. Before signing a lease, consider confirming:
- The property’s current land use designation.
- The applicable zoning district.
- Whether your proposed business is a permitted use.
- Whether additional approvals are required.
- Whether there are existing code violations or outstanding enforcement matters.
- Whether any prior approvals, variances, or conditions affect the property.
When Additional Approval Is Required
Sometimes the proposed business use is not automatically permitted, however, it may still be possible with additional government approval. Depending on the city and county, and the proposed use, you may need a:
- Conditional or special use approval;
- Variance
- Waiver;
- Site plan approval;
- Other municipal or county approval.
Obtaining these approvals can take time and may involve public hearings, application fees, technical requirements, and other conditions. More importantly, approval is not guaranteed.
The Cost of Getting It Wrong
A zoning issue discovered after a lease is signed can cost far more than investigating it beforehand. A business owner could end up paying rent on a space they cannot legally use for the intended purpose, spending extra money to modify the property, navigating an approval process they didn’t anticipate, or facing code enforcement issues after opening.
The best time to identify a zoning problem is before you commit to the property.
A Better Approach to Finding Your Next Business Location
Choosing a location should involve more than evaluating rent, square footage, visibility, and foot traffic. The property must also work legally for your business model. Before signing, consider having an experienced land use and zoning attorney review the property and proposed use.
At Ser & Associates, we assist business owners, property owners, and developers with land use, zoning, permitting, and related municipal matter. Our goal is to help clients understand the regulatory landscape and identify and resolve potential issues before they become costly problems.
