Commercial Real Estate NYC And Zoning Laws

Investment in commercial property is a very profitable business. The owner of a property just has to lease out its premises to a business establishment and count the monthly rent he/she receives like clockwork. However, you must ensure that the business establishment which one leases the premises to is using the space in a way that is compliant with the laws of the local administration. In other words, it must comply with the zoning laws prevalent in that area.

Zoning refers to the administrative control over permission to citizens to use a certain premises for selective purposes. It is a tool of urban planning by which different areas of the city are demarcated for different institutions in order to create a planned urban layout as well as to address civic, social and administrative concerns. A city is generally divided into residential, commercial, industrial and recreational zones as well as zones for special purposes, along with numerous sub-divisions for variants of all the broad categories. Using a premise in a way which is not in compliance with zoning laws will create legal concerns for both the property owner and lessee. The only way to avoid such problems is to understand local zoning laws and discuss them with any prospective tenant before entering a lease contract with them.

Here are a few points a property owner should remember to avoid legal complications due to zoning law violations:

1.       One should have a thorough understanding of the prevalent zoning ordinances imposed by the city administration. The information can be collected from government sources. real estate property management firms might also help one to understand the laws correctly.

2.       One should have a comprehensive discussion with prospective tenants regarding what kind of business is being planned and whether it is in compliance with laws outlined.

3.       Commercial real estate in NYC also needs to comply with certain requirements to be approved for leasing as office space. These include provisions for parking, noise regulatory measures, adequate illumination, use of certain languages on signboards etc. Property owners and the lessees need to be careful and follow all these requirements.

4.       Often zoning laws keep changing due to rapid development in urban areas. All concerned parties need to be updated with any changes that occur. Sometimes, one might find that a certain establishment is functional in an area where the new zoning law will not permit. This is because, even if the law changes, older establishments are allowed to continue, this provision is known as ‘grandfathering’.

5.       Another noteworthy thing is that the decision made by zoning officials is not always final. If one finds a perfect location for a business in an area with adverse zoning demarcations, the cause can be appealed to a court of law with proper justification. However, such an appeal needs to be backed by significant support from business organizations like trade associations and merchant’s chambers. A real estate service firm would also be able to advise you on the matter.

Zoning laws might not be strict in all areas of the city. Sometimes, officials allow small business establishments to go unchecked as long as they do not receive any complaints from neighbors.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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