Photo of Professionals at McConnell Wagner Sykes + Stacey PLLC

Is that commercial property in the right zone? 

When buying a commercial property, one of the first things you need to ensure is that it is in the correct zone. Typically, properties within a municipality are divided into three main zones: Residential, commercial and industrial. The type of business you plan to operate at the location must align with the proper zoning requirements. There are also sometimes categories for hospitality services, agricultural use and more. 

Some areas also have mixed-use zones. For example, certain apartment buildings may be zoned to allow commercial shops and businesses on the ground floor while maintaining residential apartments above.

Even if the property you are purchasing is in a commercial zone, it’s wise to verify the type of businesses approved for that zone. Cities sometimes impose additional restrictions, so simply being in a commercial zone doesn’t guarantee that your business will be permitted.

What if the zone doesn’t match?

If a property is not in the correct zone, it may be best to look for another option. However, if you have already purchased a property before discovering the zoning issue, you may have the option to request a variance.

A variance provides legal permission to bypass zoning regulations. For example, a property may technically be in a residential zone, but if there are no other houses nearby, the city might approve its use for commercial purposes. A variance does not change the zoning designation or regulations but allows you to operate outside of them without penalty.

Zoning is a critical aspect of property use and transactions, so it is essential to understand the legal steps involved and ensure compliance before making any decisions.