When buying a commercial property, make sure it is in the right zone

When buying a commercial property, make sure it is in the right zone

On Behalf of | Nov 16, 2020 | Commercial Real Estate |

The perfect commercial property may feel too good to be true. It’s the building you want, in the style you want, for a price you can afford. As you walk through, you can already imagine what it will be like to build your company or expand a company you’re already running. What’s the catch?

The catch could certainly be the zone that building is in. If the zone is not right for the way you want to use the property, you can get shut down and be stuck with an ideal building that is of no use to you at all.

The five main zones

There are numerous different zones, but most of them are going to fall into one of five broad categories. The categories are as follows:

  1. Commercial
  2. Residential
  3. Agricultural
  4. Industrial
  5. Recreational

Some buildings are also in mixed-use zones. For instance, a building may be usable as a residential space to rent out to tenants or as a commercial space for small businesses. The first step to take is just to ensure that your building is not in the wrong zone entirely. You don’t want to buy a property in an agricultural zone for your commercial enterprise, or a building in a residential area for your industrial company.

After that, though, make sure you take the time to dig deeper and ensure that the specific type of business you plan to open can operate in that zone. Some commercial zones may allow big-box stores, others may allow local businesses, and still others may allow gyms and fitness centers. In some cases, the zones are specific, defining exactly what style of business can exist there, while others are a bit wider in scope.

Getting started

The zone you need, of course, depends on your specific plans. The above can help you get started, though, and get you thinking about these all-important factors. Make sure you know exactly what steps to take.

 

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