When you’re opening a new business or relocating to a commercial space, the lease isn’t the only document you should be thinking about. Zoning and permitting issues can delay your opening, increase your costs, or even shut your business down before it starts. These steps are often misunderstood, but they’re a key part of any small business tenant’s planning process.
What is zoning, and why does it matter?
Zoning laws regulate land use. Local governments divide cities and counties into zones, such as commercial, residential, industrial, or mixed-use, and set rules about what types of businesses can operate in each one. Even within commercial zones, the rules can vary. A property zoned for general retail might not allow medical offices or food service without extra approvals.
Tenants often assume that if a space is listed as commercial, their business can operate there. That’s not always true. Before you sign a lease or pay a deposit, check with the city or county zoning office. Confirm that your specific type of business—whether it’s a yoga studio, dental clinic, coffee shop, or repair service—is allowed in that exact location. Don’t rely on the landlord’s word. They might not know, or they might assume it’s your responsibility to find out.
Conditional use and variances
If the zoning doesn’t match your intended use, you might still have options. Some properties fall under what’s called “conditional use,” where a business type may be allowed if it meets certain criteria or goes through a local approval process. Another option is to apply for a variance, which is an exception granted by the city for a specific use.
These processes take time and money. You’ll likely need to submit detailed plans, attend hearings, and possibly notify neighboring property owners. Approval is not guaranteed. Before pursuing a conditional use permit or variance, weigh the risk and timeline. In some cases, it’s more practical to find a space that’s already zoned appropriately.
Permits: more than just paperwork
Zoning approval is only one piece of the puzzle. Many businesses also need permits before opening. The required permits vary depending on your business type, the city you’re in, and the condition of the space you’re leasing.
Here are common permits small business tenants might need:
- Certificate of occupancy – Confirms the space is safe and approved for your specific use.
- Use permit – Grants permission to operate a certain type of business in a specific location.
- Sign permits – Required for outdoor signs, window decals, and even banners.
- Health permits – Needed for any business involving food, beverages, or personal services.
- Construction permits – Required if you’re making physical changes to the space, including installing walls, plumbing, or electrical work.
Landlords often expect tenants to handle and pay for these permits. Make sure your lease clearly states who is responsible for what. If you’re taking a shell space and building it out, you’ll likely be managing the full permitting process.
Don’t skip the research
One of the biggest mistakes new tenants make is assuming everything is ready to go. They sign the lease, start ordering equipment, and plan a grand opening—only to discover they can’t legally operate in the space. Avoid this by verifying zoning and permitting requirements before signing anything. It’s also smart to include a contingency clause in the lease that allows you to cancel if permits or approvals can’t be secured.
Involve the right professionals early
A good commercial real estate attorney can save you time and trouble by reviewing your lease and flagging any zoning or permitting risks. If the landlord promises to handle zoning approvals or permit filings, get that in writing. If you need to apply yourself, your attorney can help ensure the lease timeline gives you enough flexibility to meet city deadlines.
It’s also worth working with an architect or contractor who understands local codes. They can help you prepare accurate drawings and materials for permit applications. Some cities reject plans for small errors or missing information, which can delay the process by weeks.
Final thoughts
Zoning and permitting issues can stall your business before it even starts. Kleiner Law helps you avoid costly mistakes by reviewing your lease, identifying zoning risks, and guiding you through any required approvals. We focus on helping tenants get clarity before they sign—not after.
Here’s how we support you:
- Lease reviews with zoning and permitting in mind
- Due diligence on property use restrictions
- Clear advice on who’s responsible for permits (you or the landlord)
- Contingency planning to protect you if permits or variances fall through
- Coordination with architects, contractors, and local agencies if needed
We work alongside your broker or agent to make sure the legal side doesn’t get overlooked.
You focus on launching your business. We’ll handle the legal details. Contact us to schedule a consultation and avoid surprises that could delay your opening.
