Impact of converting a residential lot to a commercial lot

[Lou Smith]

Does anyone have any heuristics or rules of thumb regarding the price premium (or discount) associated with changing a residential, undeveloped lot to a commercial lot--assuming you can get the zoning change? I'm sure it depends upon what type of commercial entity goes on the property, so let's say the SFH residential lot can be converted to support a small deli or restaurant serving the community. All thoughts and experiences are welcomed.

[Eric Teran]

@Lou Smith this is an enormous uphill task to change the zoning to commercial from residential. It would require a variance and those are a pain, lots of money, time, and are likely to fail.

Usually, most residential zones will allow for various types of uses like daycares, assisted living, religious buildings and so forth. However, to change it to commercial will not be a likely outcome.

Maybe, if it was adjacent to a commercial zone and all the residential neighbors had to have a coffee shop and would support you till the end and the city wanted to bring in that specific type of business and the lot was so unique that it had to be there. Then maybe you will have a 2% chance of changing the zoning. What I am trying to say is that you have to show how this is a truly unique situation, get all the neighbors on board and have the city planning department support you.

Good luck.