Real estate is a practical purchase but also an investment. In recent decades, real estate has generally appreciated in value or gone up in price faster than inflation has occurred. Buying commercial real estate can be a good move for a business, especially one that needs operational facilities.
Turning capital or available financing into a factory or retail establishment can be a game-changing decision that continues to make money even when you eventually sell the business, as the land and improvements will retain value. Owning your own space can also help you keep costs low, as mortgage or loan payments will likely be less expensive than rent on a similar facility.
Before you jump at the opportunity to snap up a vacant warehouse or empty lot in an area that you think is perfect for your business, you want to learn as much as possible about the property. One of the most important details you need to verify will be the current zoning for the parcel.
The current zoning will limit your business opportunities
Tucson’s modernized zoning system has taken over its previous land use program. Through careful control of the zoning of different areas, city officials can preserve the integrity of neighborhoods while simultaneously encouraging business development and infill.
Good zoning increases property values and decreases urban congestion. Unfortunately, zoning could also limit your dreams for a building or vacant parcel by making it impossible to turn an industrial warehouse into apartments or to build the kind of facility you need in that space.
Current zoning could determine that a property is not appropriate for you, although you may be able to ask for special consideration. You might receive a variance or temporary use permit. You may also be able to request changes through official channels that correct the zoning issue. Handling these details is of the utmost importance before you move forward with a commercial real estate transaction.