Zoning is very important when it comes to commercial real estate. You need to ensure that the property you buy is correctly zoned for your proposed use. A commercial zone may be ideal for a retail shop that would be prohibited in a residential zone, for example. A commercial operation may not be allowed in an industrial zone, even though other types of businesses are permitted.
If you have determined that the real estate you have purchased—or that you are looking to purchase—is in the wrong zone, you may be able to petition for a variance. When granted, a variance means that you are allowed to use the property in a way that otherwise would not be allowed. But does that mean that it changes the zone?
The zone stays the same
For instance, say that you are looking to start a commercial operation, but the property you want to purchase is in a residential area. However, further down the street, there is another business owner who already got a variance and is running a business out of a previously residential property. Does this mean that it is now a commercial zone and you can follow suit?
It does not. The zone stays the same and it does not change. What a variance does is that it allows the property owner to break the regulations of that zone without penalty.
So, the existence of the other business may act as a precedent that helps you if you apply for a variance. But you should not assume that the zone has changed or that you can automatically break those regulations. You still need to get your own variance to do so.
Commercial real estate can be very complex, and owners need to know what rights and responsibilities they have.
