What are the most common zoning and land use issues in commercial real estate sales?

2 Zoning conflicts

Zoning conflicts are the situations where the existing or proposed use of a property does not conform to the zoning classification or standards. Zoning conflicts can arise from various reasons, such as changes in zoning regulations, changes in property use, non-compliance with zoning requirements, or disputes with neighbors or authorities. Zoning conflicts can affect the value, marketability, and feasibility of a commercial property. For example, if you want to sell a restaurant property that has been operating as a non-conforming use for decades, you may have difficulty finding a buyer who can continue the same use or obtain a zoning approval for a different use.

3 Land use restrictions

Land use restrictions are the limitations or conditions that affect the use, development, or enjoyment of a property. Land use restrictions can come from various sources, such as easements, covenants, environmental regulations, historic preservation, or eminent domain. Land use restrictions can affect the rights, obligations, and liabilities of a commercial property owner or buyer. For example, if you want to buy a warehouse property that is subject to an easement for a utility company, you may have to deal with the utility company's access rights, maintenance responsibilities, and potential damages to your property.

4 Land use disputes

Land use disputes are the conflicts or controversies that arise from the use, development, or impact of a property on other parties or interests. Land use disputes can involve various stakeholders, such as neighboring property owners, tenants, community groups, government agencies, or environmental organizations. Land use disputes can affect the reputation, profitability, and legality of a commercial property. For example, if you want to develop a hotel property that is opposed by a local preservation group, you may have to face legal challenges, public hearings, or media scrutiny.

5 Land use planning

Land use planning is the process of creating and implementing policies and plans that guide the use, development, and conservation of land and resources. Land use planning can affect the supply, demand, and value of commercial real estate in an area. Land use planning can also create opportunities or challenges for commercial property owners or buyers. For example, if you want to buy an office property in an area that is planned for mixed-use development, you may benefit from increased amenities, accessibility, and diversity. However, you may also face increased competition, regulation, or taxation.