A zoning variance is a special legal exception that allows a property owner to use land in a way that does not fully comply with current zoning laws in a particular jurisdiction.
When it comes to commercial real estate, zoning laws control how land can be used—for example, whether a property can be used for retail, offices or industrial operations, and how buildings must be placed on a particular lot or set of lots. When strict application of these rules would cause unnecessary hardship or prevent reasonable use of a property, a variance may offer a solution for developers and government entities alike.
How does a variance work?
There are two common types of variances: use variances and area variances. A use variance allows a property owner to use their land for a purpose that is not normally allowed within its designated zoning district—such as operating a commercial business in an area zoned for residential use. An area variance allows a property to break a physical or dimensional rule, such as setback requirements, height restrictions or parking minimums, without changing how a property is used.
To obtain a variance, a property owner usually must apply to the local zoning board or planning commission. The applicant must usually show that enforcing the zoning law would create a hardship due to unique conditions of the property, such as unusual shape, topography or size. They must also show that the variance would not harm public interests, lower nearby property values or conflict with the general purpose of the zoning code. Public hearings are often part of the process, and nearby property owners may have a chance to voice support or opposition.
In the commercial real estate world, zoning variances can make or break a project. Whether a developer wants to expand a structure, open a business in a restricted zone or install signage beyond the usual limits, a variance may provide the legal path forward. However, the process can be complex and time-sensitive. As a result, seeking personalized legal guidance in this regard is generally wise.
