For commercial real estate projects, zoning is very important. We previously discussed how zoning issues—although they may seem minor—can actually derail a project entirely. This could delay the development or make it impossible on that site, which can be a very costly financial situation for a new business or one that is looking to expand its operations.
One potential resolution is to ask for a zoning variance. If an area is zoned for residential properties, but a business owner wants to use that real estate for commercial purposes, a variance may allow them to do so. Does this mean that they have changed the zone?
A limited exception to zoning regulations
Generally speaking, no, a variance doesn’t change the zoning laws or alter the zone at all. Instead, it is a limited exception given to that specific property for that specific use. The overall zone—and the way the other property owners are allowed to use their real estate—stays the same.
What this means is that looking at comparable properties in the area that have been granted a variance doesn’t always guarantee that one will be granted in another similar case. Each one is decided on a case-by-case basis. If one business owner’s variance is approved, they may be allowed to carry out commercial operations, but other real estate developers or investors need to remember that that doesn’t necessarily mean that future variances will also be approved. That’s why it’s important to address the zoning issues upfront.
In some cases, commercial real estate zoning regulations and variance appeals can grow to be quite complex, and it is critical that the parties who are involved understand all of their legal options.