A great strategy that commercial real estate companies can use to increase the value and desirability of certain properties is to explore zoning possibilities.
Many properties fit the qualifications for being rezoned, something that can make them more interesting as commercial property investments.
There is a considerable process involved in rezoning; however, for the right properties, the time and effort of doing so can definitely pay off.
Consider the Possibilities
Zoning exists to regulate how a property can be used in a community to ensure safety and harmony within that community.
As areas develop and change, it is sometimes possible to have properties re-zoned so they can be used for different things.
Doing so can increase the value of certain properties and turn them into more desirable commercial real estate opportunities for buyers who may be interested in the location but want to use the property in a way that is not permitted by current zoning.
Do The Research
Commercial real estate companies doing the research ahead of time and going through the process themselves are more likely to sell for a better price to a better buyer than if they leave rezoning to the buyer.
With a great vision of how a property could be used and a good understanding of zoning laws, agencies can really take advantage of the possibilities that rezoning can offer.
The Rezoning Process
As promising as the idea of rezoning may be, it’s important to note that it can be a timely process that involves a great deal of work.
A rezoning project will go through a number of phases, beginning with planning of the project to determine development plans of how the property will be used so the idea can be presented to the appropriate government offices.
The project must follow all local ordinances and safety codes, or bring a building up to code.
It requires the filing of numerous official forms to receive consideration for rezoning.
Rezoning - Who May Provide Input
Planning these commercial property investments must often incorporate input from local police, fire, and other municipal services as well as the local government and community.
Projects must usually be presented before planning commissions, zoning boards, and the public in order to gain consideration.
This process could take months or even years yet prove to be worthwhile for some property investments.
Applying for and Winning Approval
For commercial real estate companies to win approval for rezoning, they must have:
- An acceptable plan for aesthetically pleasing and functional improvements.
- Present a use that will benefit the community in some way.
- Have a willingness to compromise.
- Be able to give something back to the community in return.
Many rezoning projects involve cash donations to the community or giving a portion of the property to the community to improve it.
Committees are also more likely to approve projects that improve on the local infrastructure and improve the community in different ways.
Essentially, agencies must be able to convince zoning boards that it is to everyone’s benefit to make the zoning change and permit this new use of the property.
Although rezoning can be quite an effort, it can be worthwhile if doing so makes properties more valuable and desirable.
It is a great way for smart brokers to turn underperforming properties into great commercial real estate opportunities that can help to improve the entire community.
Used wisely, this strategy can benefit realtors, those looking for great property investments, and entire communities alike!