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Checking zoning regulations before buying commercial property

On Behalf of | Feb 7, 2022 | Real Estate |

Buying commercial property can be a great investment for a growing business. Rather than paying rent every month, you may be able to afford a similar space for less money when paying on a commercial real estate loan. You will also accrue equity in the property, which can be a valuable asset for the business. Unlike when you operate in a rented space, you won’t have to worry about a landlord restricting what your business does.

There are many benefits that come from purchasing commercial real estate, but there are absolutely risks as well. You might buy a property for more than it is reasonably worth. You could also invest in a property where zoning restrictions may prevent you from using it in the exact way that you wish. 

Tennessee zoning laws affect everything from property used to development

The purpose of zoning regulations is to preserve the characteristics of the community and the value of properties. Residential property would not be worth much if a large slaughterhouse operated nearby, causing odor and noise pollution. Businesses would also have to adjust their operations because of the proximity of residential properties.

By imposing limits on the use of properties and the edifices constructed on certain parcels, zoning authorities help make land ownership a more stable and safer investment for residential property owners and businesses alike. State law allows zoning rules to limit everything from how much of an individual lot a business covers with building to how tall that building is and what the company can do inside.

Rather than making assumptions about what the zoning regulations state or that you will be able to change them, it is often a better approach to find a property that already meets your needs in terms of zoning regulation.

Although you can change the zoning, the process is lengthy

It is possible for a company to ask the local community and government authorities to change the zoning on a parcel. However, this process is often quite lengthy and subject to forms of feedback outside of the control of the company, such as input from local community members.

Sometimes, given a good deal for a piece of land or an ideal location, attempting to make zoning changes for a commercial property can be a worthwhile endeavor. For others, the property search should include only parcels and buildings already zoned for the company’s intended purposes.

Learning more about the elements that influence the success of a commercial real estate transaction can help your business make the most of its upcoming investment in real estate.

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