When dealing with commercial real estate, you will need an understanding of your city’s zoning ordinances. We sat down and answered some of the most frequently asked questions about property zones:
What is a property zone?
Property zoning refers to local regulations that determine
how real estate in an area can be used. These regulations may specify how land
can be developed, how tall a building can be and what types of businesses can
occupy a space.
How are property zones determined?
Your local government officials determine zoning based on their master plan for your city. They take into account transportation routes, sound ordinances, natural resources, areas of historical significance and other factors when determining property zones.
What are some common property zones?
Each municipality determines its own classifications, but as
real estate professionals, we commonly see the following property zones:
Planned area development
Can zoning change?
Governments may change an area’s zoning to best benefit the
community. They hold public hearings to get community input on the proposed
changes before making a final decision. You can request a zoning variance or
use permit if you would like to use a property for something outside its current
Is an opportunity zone the same as a property zone?
Opportunity zones have been a hot topic in recent years
after the U.S. government passed the Tax Cuts and Jobs Act in
December 2017. Government officials designated certain areas as opportunity
zones, offering tax incentives to those who invest in these distressed
communities. City zoning codes would still apply in these areas.