Whether you are looking at buying a commercial building for you own business use after adding up what you paid the landlord in lease payments over the past 10 years or so or you are looking at buying commercial real estate for investment as a result of the increased competition for investment homes in Arizona (with 25% price increase in the past year and 22 day supply of homes under 100k) it is important to know that planning and zoning play an important part in commercial real estate values.
Zoning goes through constant evolution and change, new interpretations of the code are made by zoning board members as well as city commissioners.
While Zoning must be thoroughly determined and could be a potential pitfall to overcome, it could also provide an opportunity that awaits the real estate investor who takes the time to study how it can be used.
Imagine a neighborhood of small frame homes built 75 years ago that you find the underlying zoning allows multifamily homes.
Also imagine the opportunities of knowing of plans for a bypass Loop (changing traffic flow) new roads, airport expansion while these projects may not appear for years, think of the commercial real estate opportunities a real estate investor can be looking for.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.