Use Restrictions Importance When Purchasing Commercial Real Estate

When you purchase commercial real estate, it is extremely important that you pay close attention to the restrictions placed on the use of your property. Knowing what usages are NOT permitted in your commercial space will save you time, money, and effort trying to change the usage rules and will ensure you do not have problems utilizing your space for the purpose for which you purchased it

Know your Zoning

Knowing usage restrictions first involves looking at how the property itself is zoned.

• Zoning involves how land and property is to be built and ultimately used.
• Your commercial property may have a narrow commercial zoning interpretation applied, meaning its usage is limited to activities involving commerce, such as retailers.
  
• Retail operations can include grocery stores, clothing stores, salons, etc. Commercial storage may also be utilized under this interpretation, including public storage facilities.
• In other areas, your commercial facility may have a broad zoning interpretation applied, which can include industrial usage where products made will be sold in commerce and result in some material return.
• Your commercial property may also be governed by some mixed zoning laws, which means there may be additional uses allowed, and other restrictions within your facility. You may have a mixture of industrial, commercial, and even residential usage for and near your space.

What Are Your Neighbors Doing?

Doing your homework also involves looking at how adjacent properties are being used, and how that affects your intended use for your commercial property. The types of businesses that are adjacent to your commercial property will have an effect on your intended usage of the building.

For example, the property your are considering may have the same zoning as its neighbors, and yet, what if one of those neighbors is near a church or a school. In many U.S. cities, that means your commercial location cannot serve alcohol. So, if you intended to operate a restaurant with a liquor license, you are not likely to be able use your commercial property in the way you intended due to the adjacency of the school and church.

Getting Help

Making sure you know these things in advance will save you much time, money, and legal wrangling. Trying to change the usage of your commercial property by applying for a zoning variance is not always a simple or straightforward process, so it is better to know the restrictions on use before you buy! The best way to do this is to have a qualified attorney look over the contract to ensure there are no hidden restrictions or problems that you may not have been aware of.