Can I Enhance Value via a Zoning Change?

At times, a zoning change can positively affect the market value of a property.  A highest and best use analysis considers all of the factors that influence value including; physically possible uses, legally permissible uses, financially feasible uses and maximally productive uses.  Zoning is considered under legal permissibility.

If a property benefits from being on an arterial roadway with a significant traffic count, corner orientation, it has good visibility and good accessibility it may be suitable for commercial development or development with a greater intensity than single-family residential development.  A number of factors not detailed in this brief summary discussion could have a bearing on the potential use of a specific site.  Zoning, however, may be one of the factors affecting use, and a zoning change could resolve issues regarding legal permissibility.

The neighborhood development pattern, assemblages, the supply and demand of zoned parcels, the land use plan and politics may play a role in the ultimate zoning and development of a site.  Many properties are purchased "subject to" a change in zoning that is not approved.  Thus, while zoning may enhance the value of property that is clearly appropriate for a more intensive use, it may not be a general enhancement that increases the value of every property.       

Contact us with your questions or concerns regarding zoning changes or regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.         

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.