Permitting Horror Stories 2
When leasing a commercial space details matter
Jackson, was like you, a small business owner looking for his first retail space. After much searching he finally found it. Everything seemed perfect. Location, size, even the rent. Of course it had to be built out but that’s what made it so perfect. He could have it built out the way he had dreamed about since he first started his business. He gave the landlord the required deposit, met with the landlord and his team to iron out the design, and everything seemed a go. The landlord stated the permits had been submitted, the approval would definitely be approved and that Jackson would be ready to go in a few weeks.
Well, a few weeks went by and Jackson heard from the landlord. The permit had been denied and Jackson would not be able to start building out like he had dreamed. According to the landlord, Jackson’s type of business was not allowed in that zone as Los Angeles had seven different commercial zones with different limitations for business use and the landlord hadn’t known that.
The landlord would have to apply for and get approval for a Conditional Use Permit. There would also be a delay because the landlord and his design team would have to find someone who was an expert at this sort of thing because they were not, and he didn’t know how long it would take to find someone. Jackson wasn’t having it. He went searching for someone who was an expert in Los Angeles commercial zone rules, regulations and limitations. He came across us, spoke with us, gave us his landlord’s information and of course we reached out to the landlord.
We were able to work with both the landlord, his design team and Jackson to help them through what was called a ‘Discretionary Permit process’ to get the correct building permits. Sadly, because the landlord wasn’t aware of such zoning laws when he bought the building, it ended up costing both Jackson and the landlord. It added 12 months to Jackson’s grand opening time frame and the landlord $20,000 more in permiting fees. Had the landlord known about the zone restrictions, we could have been hired to get the Property Research/Due Diligence report from the beginning in order to select the right type of business space to buy initially and lease out to tenants, then when someone like Jackson came along, the landlord would have said either yes or no to Jackson from the beginning, saving all parties time and money.
It is important that if you’re going to be a commercial landlord that you get a permit expert like us here at Building Permit Expeditor on your team. Think to hire someone like us from the beginning before you close out on the deal to buy that building. You don’t want to lose any money, potential profits or tenant opportunities if you can help it. Hire us today!