Zoning, Conditional Use Permits (CUPs), and Veterinary Leases: What To Know Before Signing

One of the most expensive mistakes a veterinary tenant can make is____________________________?

The answer: to sign a lease before confirming zoning approval. This happens more often than one would think. I always recommend getting the zoning approval in writing or email. Never rely solely on the any broker’s representation of zoning. They might have been told it is zoned for a veterinary practice. However, government office workers are human and can make mistakes. They deal with documents that have been amended many times over the years. So always get a confirmation in writing, especially if you have it only verbally.  

Add to that, veterinary uses are not automatically permitted in every commercial zone. This is true even if the space looks perfect to those of us looking for something.

Not All “Commercial” Zoning Is the Same

Cities typically divide commercial property into categories like neighborhood retail, general commercial, professional office, industrial and mixed use.

Veterinary use may be permitted by right. It may also be allowed by CUP, which is a conditional use permit. Alternatively, it can be prohibited altogether or restricted if overnight boarding is happening. Most practices don’t do overnight boarding unless it’s emergency or urgent care. You cannot assume because another medical user is in the building that a veterinary is allowed. Animals change the analysis.

What Is a CUP if not what I drink my coffee from?

It is a Conditional Use Permit (CUP).A CUP is city approval required when a use is allowed, but only under certain conditions.

This process might include a public hearing and notices to neighbors. It could involve a parking analysis or sometimes a traffic study. Odor mitigation plans, sound control measures, and waste disposal plans also might be needed. Approval can be quick (a few months) to 6 months or more. It is critical to draft your lease with a contingency for zoning approval. Otherwise, you are paying rent on a space you can’t use to open your practice.

Boarding vs No Boarding Matters

Many cities treat a practice with no boarding as different from one with boarding. Most practices don’t board pets at all because staff overhead is an issue. They rarely provide boarding for “medical observation,” as those often get directed to ER locations anyway. However, if you plan to board, there might be a change in parking requirements for a space. Noise reviews may also lead to possible limitations on hours of operation. Extra ventilation requirements could be necessary. Be clear about your business plan before you even begin to search for a space.

Retail Centers: A Common Trap

Veterinary clinics are increasingly locating in retail centers for both visibility and foot traffic. Retail locations might be a good option. But, those leases might include clauses specific to odor restrictions. They might also include noise limitations, parking restrictions specific to peak times for the practice, or prohibited use clauses. There might be requirements for enhanced HVAC filtration. Your contractor should be able to address those. There may also be requirements for waste storage and disposal. The lease might specify where the pet relief areas are.

California-Specific Considerations

In California, you may also need to address other issues such as ADA/CASp accessibility and state board compliance. Waste disposal is another consideration and is usually dictated by the county. Med gas installation permits are required. Again, a good contractor should be assisting with this and know what they are doing.

How to Protect Yourself

Before signing a lease, always but always have a real estate attorney review the lease. But even before that, confirm zoning yourself and in writing. Consider speaking directly with city planning to determine if a CUP is required. If you find a space that is not zoned, but you think it should be, check if a modification of zoning is an option. This is especially true if the property owner likes your use. They might be able to help you communicate with the city about a possible modification of use. Make sure that your lease has a contingency for zoning approval.