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Zoning must be considered when purchasing commercial property

On Behalf of | Apr 21, 2016 | Commercial Real Estate

Commercial entities in South Florida, whether they are retailers, wholesalers or manufacturers, deal with all types of individuals and companies in the pursuit of making a profit. Many will enter into contracts with distributors and service vendors, and others will engage marketing firms to maximize their exposure and learn more about their customer base. But, how many business leaders consider that they may need to work with government entities, especially when they are considering an investment in commercial property?

The fact is that the governments in most metropolitan areas, including those in South Florida, have certain rules and regulations that must be abided by when a company wants to go into business in that area. Zoning regulations, in particular, can be an issue that can move to the forefront whenever a company is planning on purchasing a piece of commercial real estate for any of a number of different reasons: establishing an office building, opening up a new retail location or simply storing goods in a warehouse. If an area isn’t zoned in the way the company wants to use the property, there may be a problem.

Most metropolitan areas will break down their zones into particular sections, such as residential, commercial and industrial. However, city governments are also interested in economic growth and sustainable populations as a tax base. So, when a company has located an ideal piece of property that happens to fall outside the appropriate zoning regulation, there is a chance that the property owner could apply to have the area re-zoned for the intended purpose.

Zoning is a serious consideration that will likely be a part of many commercial real estate transactions in South Florida. Buyers will usually want to make sure that they have the appropriate information in order to enter into a real estate transaction that will result in the best outcome.

Source: FindLaw, “Commercial Zoning,” Accessed April 15, 2016