Zoning / Approved Zoning

Zoning is a "police power" of the state, and it is generally based on land use planning.   As discussed in another web page, land use plans are developed by the municipality or authorized governmental agency charged with the general welfare of an area.  Each property is placed zoned based on its expected use.  If a property is located on the main highway near other commercial development, it may be zoned by the City or County that it falls within for a similar use.  

In Clark County many tentative zoning approvals are often granted via the use of a "Resolution of Intent" or "ROI."  Zoning is approved via an ROI subject to actual development within a certain period of time.  After the period of time specified, the approved zoning reverts to the previous category, and an owner must start the process over to gain another approval.

Zoning can positively affect market value because it offers a property development flexibility.  A property clearly suitable for residential development, however, would not likely gain an enhanced value if commercial zoning were approved for it.  Thus, a change in zoning by itself may not increase value.  The 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, but as discussed, if the other criteria do not favor commercial development, a property may not be suitable for that purpose.   

Contact us with your questions or concerns regarding zoning 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.