Understanding Two Critical Steps in the Development and Occupancy Process

Before a company can build, expand, or occupy a property, it must navigate a maze of local regulations that determine how the land can be used. Two of the most important—and often misunderstood—concepts are zoning and entitlements. While they’re closely related, they serve different purposes in the commercial real estate process, and understanding both can dramatically reduce risk and delay.

At Keyser, our advisors guide space occupiers and tenants through these stages across all property types—office, warehouse, manufacturing, medical, and retail—using data, technology, and local expertise to anticipate issues before they become costly obstacles.

1. What Is Zoning?

Zoning varies by geography and municipality widely.  It defines what can and cannot be built on a parcel of land. Each municipality divides land into districts (e.g., commercial, industrial, medical, or retail), and each district has its own rules for permitted uses, building height, density, parking, and setbacks.

In short, zoning determines how the land can be used. For example:

• A site zoned for “C-2” may allow retail but prohibit light manufacturing.
• A parcel zoned for “industrial” might not permit a medical office or clinic without a special use permit.

Understanding these designations early is crucial. Selecting a site with the wrong zoning can lead to major project delays or even make a property unusable for your intended purpose.

2. What Are Entitlements?

Entitlements are the permissions or approvals required to develop a property under its zoning classification. Even if zoning allows your intended use, you may still need entitlements such as:

• Site plan or design review approvals
• Conditional use permits
• Variances (for height, parking, or setbacks)
• Environmental impact studies
• Building and occupancy permits

Entitlements are typically granted by city or county planning departments and often require public hearings or local approvals. The process can take weeks—or months—depending on the complexity of the project and community input.

3. Why the Difference Matters

Zoning tells you what’s possible. Entitlements determine what’s permitted and when.

A site may appear ideal based on zoning, but if entitlements are difficult or uncertain, the project’s timeline and cost can quickly spiral. For companies seeking to move fast, expand operations, or open new facilities, missing these nuances can jeopardize schedules and investment outcomes.

Keyser’s AI-enabled platform helps identify risk factors early—analyzing zoning maps, entitlement timelines, and local precedent—to forecast which sites offer the best balance of flexibility and speed.

4. How to Reduce Zoning and Entitlement Risk

• Engage experts early. A qualified tenant advisor or project consultant can assess site feasibility before you commit.
• Conduct due diligence up front. Request zoning verification letters and review municipal plans.
• Model multiple scenarios. Use data to compare not just site costs, but the time, political climate, and entitlement complexity of each location.
• Build relationships with local officials. Early communication can help clarify requirements and minimize surprises later.

Keyser’s project management, site selection, and advisory teams coordinate this process globally, ensuring our clients’ facilities—whether office headquarters, warehouses, manufacturing plants, medical campuses, or retail locations—meet both business and regulatory objectives.

The Keyser Advantage

With over 600 professionals worldwide, including international partners, Keyser delivers the full scope of services of any global commercial real estate firm—without conflicts of interest. Our AI-enabled insights and occupier-only model empower clients to make smarter, faster, and safer real estate decisions—wherever they operate.

Understanding the difference between zoning and entitlements isn’t just a planning issue—it’s a strategic advantage. With the right guidance, your next project can move from concept to occupancy with confidence and control.

Frequently Asked Questions:

Q: What’s the difference between commercial zoning and entitlements in real estate?

A: Commercial zoning defines how a property can be used—such as office, industrial, medical, or retail—and sets parameters for building height, parking, setbacks, and density.
Entitlements are the approvals required to build or operate within those zoning rules, such as site plan approvals, conditional use permits, variances, and building/occupancy permits.

In short: zoning governs allowable use; entitlements grant permission to execute that use.

A: Zoning and entitlements directly affect project feasibility, timing, and cost.
A property may appear suitable based on zoning, but entitlement hurdles—public hearings, environmental reviews, design approval, or political resistance—can create costly delays or restrict operations.

Companies that understand both zoning and entitlements early in the process can avoid missteps, accelerate occupancy, and protect capital plans.

Q: How can businesses reduce zoning and entitlement risk during site selection or expansion?

A: To minimize entitlement delays and zoning exposure, organizations should:

• Conduct zoning and land-use due diligence before committing

• Obtain zoning verification and review municipal plans

• Model entitlement timelines and political/approval risk

• Engage experienced tenant advisors and land-use professionals early

• Coordinate with local planning authorities before design and investment decisions

A proactive approach—and the right advisory team—helps secure compliant sites faster, mitigate approval risk, and preserve schedule and budget certainty.