What’s a Variance? + Examples | Commercial Real Estate
Zoning regulations play a crucial role in shaping the physical and functional aspects of a community. They classify land into different zones, such as residential, commercial, industrial, or mixed-use, and specify what types of activities or developments are permitted in each zone. However, these regulations can sometimes be inflexible, and certain property owners may find themselves facing constraints that could impede their ability to fully utilize or develop their land.
A zoning variance provides a mechanism for property owners to petition for relief from specific zoning requirements. This relief is typically sought when adherence to the existing regulations would result in undue hardship or practical difficulties for the property owner. Undue hardship might be financial in nature, such as if strict adherence would render the property economically unviable. Alternatively, it could be related to unique physical characteristics of the property, such as an irregular shape or topographical challenges.
The process for obtaining a zoning variance varies by jurisdiction but generally involves several key steps. First, the property owner must submit a formal application to the local zoning board or planning commission. This application typically includes details about the property, the requested variance, and the reasons for seeking it. Public hearings are often scheduled to allow community members to voice their opinions on the proposed variance.
During these hearings, the property owner or their representative presents their case, explaining why the variance is necessary and addressing any potential concerns raised by the community or the zoning board. The decision to grant or deny a variance is ultimately made by the zoning board or a similar regulatory body, taking into account factors such as the impact on neighboring properties, the character of the area, and the overall public interest.
It’s important to note that variances are intended to be exceptions rather than the rule. Zoning boards are typically cautious in granting variances to ensure that the overall integrity of the zoning code and the community’s planning objectives are maintained. Property owners may also be required to meet certain conditions or restrictions even if a variance is granted.
Zoning variances in commercial real estate can take various forms, and the specific examples depend on the nature of the zoning regulations and the unique circumstances of the property. Here are a few common examples:
1.) Setback Variance
Scenario: A property owner wants to construct a building closer to the property line than what the zoning code permits due to the size or shape of the lot.
Reason for Variance: The property’s irregular shape or size makes it challenging to adhere to the standard setback requirements without significantly limiting the usable space.
2.) Use Variance
Scenario: A property is zoned for commercial use, but the owner wishes to use it for a purpose not typically allowed, such as converting a commercial space into a mixed-use development with residential units.
Reason for Variance: The property owner believes that the proposed use is compatible with the surrounding area and that strict adherence to the zoning code would result in undue hardship.
3.) Height Variance
Scenario: A property owner wants to construct a building taller than the maximum height allowed by the zoning regulations.
Reason for Variance: The property owner may argue that the increased height is necessary for the economic viability of the project or that it won’t negatively impact neighboring properties.
4.) Parking Variance
Scenario: The zoning code requires a certain number of parking spaces for a commercial development, but the property owner seeks a variance to provide fewer spaces.
Reason for Variance: The property owner may argue that the nature of the business or the location makes it practical to have fewer parking spaces without causing significant negative effects on traffic or the community.
5.) Signage Variance
Scenario: A business owner wants to install a larger or more prominent sign than what is allowed by the zoning regulations.
Reason for Variance: The business owner may argue that increased signage is necessary for visibility, especially if the property is situated in an area with high competition or limited visibility.
6.) Density Variance
Scenario: A property owner wishes to develop a higher-density project than what is allowed by the zoning regulations.
Reason for Variance: The property owner might argue that the increased density is necessary for the economic feasibility of the project or that it aligns with the broader goals of the community.
It’s important to note that each variance request is evaluated on a case-by-case basis, and the decision depends on factors such as the specific circumstances, impact on the community, and the justification provided by the property owner. Additionally, the types of variances allowed and the variance process can vary significantly from one jurisdiction to another.
Disclaimer: The information provided herein is intended for general informational purposes only and should not be considered as legal or financial advice. Zoning regulations and variance processes can vary widely based on local laws, and specific circumstances surrounding a commercial real estate project. Real estate matters often involve complex legal and regulatory issues, and decisions should be made in consultation with qualified professionals.
