Industrial Property Zoning Considerations
Zoning is different for every local area, so it's important to understand how your property's zoning impacts its potential uses.
Zoning
Zoning laws are in place to designate land for specific uses. There are many different kinds of zones — every local area typically has its own variations — but they all play a part in determining what kind of property can be built on a specific parcel of land.
While there are many, many different categories of zoning, from agricultural to residential, industrial zoning is usually broken down into two or four categories: heavy industrial and light industrial. Often, manufacturing is also broken out into heavy and light purposes for zoning as well. There’s usually a common logic for each category. The manufacturing of heavy goods like cars would typically only be permissible in a heavy manufacturing zone, while small-scale storage facilities or even boutique small manufacturers would operate in a light industrial or manufacturing zone.
Please note that every local area — generally at the city level, but sometimes at a wider level — has its own interpretation and zoning code. It’s important to understand the specific zoning regulations for your area. The body responsible for zoning regulations is typically a zoning board within a municipal government.
Changes to Zoning
Zoning ordinances are not set in stone, and given the growth of a city or changes to an area, zones may be redefined or completely overhauled. Zoning changes can be initiated by developers, as well. This can be prohibitively complicated, especially for land within a large city — a zoning board must consider the impact a change in zoning would have on surrounding areas.
Typically, the process for rezoning can be broken down into several steps:
Conduct a survey of your land
Communicate the changes you wish to see to your local government
File an application to rezone your land
Government reviews plan, and holds a planning commission meeting for you to address concerns
Meet with your local government’s legislature to discuss changes and put it to a vote
What are the zoning requirements for industrial properties?
Industrial zoning regulations often differ between light industrial zoning and heavy industrial zoning.
Light industrial property uses include packaging, certain types of manufacturing, and distribution facilities. As these uses do not typically produce a significant amount of noise and environmental pollution, light industrial zones are generally located closer to commercial and residential zones than their heavy industrial counterparts.
Heavy industrial property uses include chemical manufacturing, mining, power production. As a result, heavy industrial zoning regulations specifically take into account factors like noise pollution, smoke, smell, waste, and other, similar elements that could have a negative impact on the surrounding environment.
Airports are generally considered heavy industrial properties, but often are subject to somewhat different rules and regulations due to the amount of land required and the additional noise generated by their operations.
What are the differences between light industrial and heavy industrial zoning?
Light industrial zoning typically permits uses such as packaging, certain types of manufacturing, and distribution facilities, while heavy industrial zoning permits uses such as chemical manufacturing, mining, and power production. Light industrial zoning is generally located closer to commercial and residential zones than heavy industrial zoning, as heavy industrial zoning regulations take into account factors like noise pollution, smoke, smell, waste, and other, similar elements that could have a negative impact on the surrounding environment. Source
What are the advantages and disadvantages of industrial zoning?
The advantages of industrial zoning include the potential for higher profits due to the lack of competition from other businesses, as well as the potential for more efficient production and distribution of goods. The disadvantages of industrial zoning include the potential for higher land remediation costs, longer development timelines, and land constraints (including zoning).
Light industrial zoning generally allows for packaging, certain types of manufacturing, and distribution facilities, while heavy industrial zoning generally allows for chemical manufacturing, mining, and power production. Heavy industrial zoning regulations take into account factors like noise pollution, smoke, smell, waste, and other, similar elements that could have a negative impact on the surrounding environment. Airports are generally considered heavy industrial properties, but often are subject to somewhat different rules and regulations due to the amount of land required and the additional noise generated by their operations.
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What are the restrictions on industrial property development?
Industrial property development can be subject to a variety of restrictions, depending on the lender and the property's deed. Restrictions may include occupancy requirements, business use restrictions, operating hour restrictions, and requirements to keep the property in good repair. For example, a lender may require that the property be occupied at least 80% of the time, or that no businesses related to alcohol or tobacco be opened on the property. Additionally, a landlord may have a restrictive covenant that prohibits businesses from being opened before or after certain hours (ex. 8am to 10pm).
What are the benefits of industrial property zoning?
Industrial property zoning can provide a number of benefits, including increased efficiency of operations, improved safety, and increased usable square footage.
Column spacing is an important factor in industrial property zoning. Wider or deeper bay spacing near loading docks, often referred to as speed bays, can make loading operations safer and more efficient. This can also increase the usable square footage of the property.
In addition, industrial zoning regulations often differ between light industrial zoning and heavy industrial zoning. Light industrial zoning typically permits uses such as packaging, certain types of manufacturing, and distribution facilities, while heavy industrial zoning typically permits uses such as chemical manufacturing, mining, and power production.
Retail zoning may also have restrictions on certain types of businesses, such as bars and liquor stores.
What are the potential risks associated with industrial property zoning?
The potential risks associated with industrial property zoning include noise pollution, smoke, smell, waste, and other environmental elements that could have a negative impact on the surrounding environment. Industrial zoning regulations often differ between light industrial zoning and heavy industrial zoning. Light industrial zoning typically permits uses such as packaging, certain types of manufacturing, and distribution facilities, while heavy industrial zoning typically permits chemical manufacturing, mining, and power production. Airports are generally considered heavy industrial properties, but often are subject to somewhat different rules and regulations due to the amount of land required and the additional noise generated by their operations.
This process can be quite long even in a best-case scenario, so should you wish to change zoning that impacts your property, it is best to get started early. The full process can take up to one year to complete in most municipalities.