Finding vacant land or a building that needs work or complete demolition could be beneficial for your business. Real estate can be a viable investment, particularly if your company wants its own facilities.
Some property is available at a bargain price in part because there are zoning issues that will limit future business enterprises at that location. If there are issues with a property’s zoning, you will have to make a significant effort to correct those issues.
Is investing in a property with zoning contrary to your intended use a good investment for your business?
There are 2 ways to address zoning mismatches
If your company were to buy a property zoned for agricultural or residential purposes instead of commercial or industrial purposes, you will not be able to use the property the way that you intend until after you update the zoning.
In some circumstances, you can obtain a zoning variance, which will allow you to conduct specific operations at that location despite the current zoning. Otherwise, you will need to have the area officially rezoned, which may require a lot of effort at the municipal level. From an environmental impact report to establishing a rapport with the local community, there will be numerous steps involved in a large-scale rezoning effort.
Looking into the costs involved in addressing the zoning issue and the likelihood of success given precedent in your area, you can make an individual choice about a piece of property. Learning more about the unique rules for commercial real estate can help businesses make smarter choices when buying real property.
