Zoning and Entitlements in the Commercial Real Estate Development Industry

 Posted on December 00, 0000 in Zoning and Land Use

Few things in life are as satisfying as the purchase of an undeveloped plot of land. It is, essentially, a blank slate, an opportunity to build your vision. Land development requires more than just an idea, however. Investors must also navigate through a complex set of nuanced rules and regulations. Overseen and enforced by local, state, and even federal municipalities, the laws of greatest concern relate to how the land can be used. Learn more about zoning and entitlements in the commercial real estate industry (CRE) in the following sections.

Zoning and Entitlements - What Are These Laws and Why Do They Matter?

New CRE investors are often surprised to discover just how important zoning and entitlements are to their real estate projects. Able to bring a development project to a complete standstill, zoning and entitlement issues can hike up costs and threaten a project's completion. So what, exactly, are these laws, and how can you avoid them in your investment projects?

Entitlements are seen as the backbone of land development. In their simplest form, they are a set of laws that govern how a plot of land can be used. They may restrict everything from the building of a road to the addition of utilities and landscaping. Zoning laws are a subset of entitlement laws, and they specifically cover issues like the height of buildings, parking spaces, and other design specifics related to the land development process.

Land developers who are familiar with zoning and entitlement laws may assume that they can easily overcome challenges using variances, permits, and re-zoning measures, but this approach can increase costs and the chances of a delay. Instead, it is generally more prudent for developers to avoid zoning and entitlement issues.

Preventing Zoning and Entitlement Issues in Your CRE Project

While it is unlikely that you will ever find the “perfect” plot of land, you can avoid many of the common zoning and entitlement issues by conducting your due diligence. This measure allows you to examine the current zoning allowances for a particular plot of land. From there, you can determine if re-zoning is necessary and possible. However, it is important to keep in mind that these laws are exceptionally complex and ever-changing. As such, it is highly advised that developers seek out the assistance of a seasoned real estate lawyer before purchasing an undeveloped plot of land - especially if they are new to the investment game.

Contact Our Seasoned Oak Brook Commercial Real Estate Lawyers

Whether you are a seasoned investor or new to the game, Lindell & Tessitore, P.C. is the firm to trust. As one of the most reputable real estate firms in the state, our Naperville commercial real estate attorneys have the skills and experience you need for your next investment project. Schedule a personalized consultation by calling 630-228-2555 today.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs5.asp?ActID=802&ChapterID=14