Zoning Laws Can Impact Commercial Property Decisions

Businesses looking to purchase or lease commercial real estate must ensure properties comply with local zoning bylaws, according to the Business Development Bank of Canada (BDC). These regulations dictate land use, building placement, and operational parameters, potentially affecting a business's ability to function as intended.

Zoning bylaws, established by provinces and municipalities, govern factors such as permitted land use, building locations, types of structures, lot sizes, parking requirements, and setbacks from property lines. Failure to adhere to these rules can result in costly remediation, including the potential dismantling of structures or limitations on business activities.

BDC's Assistant Vice President, Business Development, Dan LaBossière, recommends that business owners engage legal counsel experienced in commercial property. Lawyers can verify zoning compliance by consulting directly with municipal planning or zoning authorities to obtain the most current regulations for a prospective location.

Special considerations apply to heritage buildings, which have stricter guidelines for alterations to preserve their character. Additionally, older properties may present unforeseen issues, such as a lack of necessary permits for existing structures discovered only after a property survey, as highlighted by an example from LaBossière.

BDC also cautions that zoning bylaws are subject to change. A previous occupant's use of a property may not be permissible for a new business, even if the former owner had a variance. Any plans for new construction or modifications to existing structures require obtaining the appropriate building permits from the municipality.