Entitlements

As a long-time real estate practitioner, I’ve learned a few things over the years. If I can help just one person by sharing ideas and lessons learned, then this format will be worthwhile. Some have resulted from the joy of success, while others were learned the hard way. I promise to be transparent and not hold back. Sharing is how I choose to start my week.

April 6, 2026

Entitlements

For many people outside the real estate industry the word “Entitlements” can be confusing. In its purest form, it’s a noun meaning the approval by a local government to proceed with a project. In reality, it’s a process which may involve many different layers and require multiple participants to accomplish. A developer may seek Entitlements to build a certain type of structure (home, office building, shopping center, etc.) on a given piece of property.

The Background

Part of the initial process involves doing some market research to ensure there’s a demand for this usage. This may involve hiring a third-party marketing company or working with a real estate broker to do a market analysis. If there appears to be strong enough demand, then a cost analysis is generated by a builder or General Contractor. All the preceding information is then entered into a pro forma to determine if the project makes economic sense. Assuming it does, then the work of the Entitlement process begins.

The Process

Every municipality has a land use plan showing what the intended uses are for the different properties within their jurisdiction. If the property in question doesn’t have a compatible intended use with what the developer is seeking, then the first step is to get it rezoned. This involves engaging the services of a civil engineer who researches the codes and ordinances affecting the zoning and designs a preliminary site plan which meets these standards. Often, this involves approval by different governmental bodies which may include a Planning & Zoning Commission and a City Council. If the rezoning is approved, then a Plat of the property is created which includes any suggestions by the governmental bodies and identifies all restrictions, setbacks, and easements affecting the property. An architect may also be required to design a rendering of the exterior of the building, as well as calculate the coverage ratios of the project elements. Once this work is completed then the project must typically reappear before the municipal bodies again. If approved, then the developer may proceed with completing the architectural construction documents and request a building permit. Depending

on the scope and location of the project, the Entitlement process may take anywhere from several months to several years. The costs associated with it will also vary from tens of thousands of dollars to several million.

Have a question about Entitlements? Feel free to reach out to me. I’ll be happy to discuss it with you!