Zoning in California: Key Lessons from Securing a Lease for Keywest Auto Collision Center
January 23, 2025
10721 JERSEY BLVD, RANCHO CUCAMONGA - 37,600 SF INDUSTRIAL MANUFACTURING SPACE
When I was hired to find a property for Keywest Auto Collision Center, I knew zoning would be a challenge. What I didn’t anticipate was the sheer complexity of navigating California’s zoning regulations—a process that felt more like navigating a maze than simply following a map.
For business owners and real estate professionals alike, zoning can make or break a deal. Here’s what I learned while working on this deal and how it can help you approach similar challenges with clarity and strategy.
Collision Repair Classification
The first step in the process is determining how the business is classified. It sounds straightforward, but it’s not. Auto collision centers often fall under various classifications such as “auto repair major,” “auto body & repair,” “industrial repair,” “vehicle repair major,” or similar variations. However, the details in the use description matter. Does the classification explicitly permit collision-specific services like painting?
Skipping this step can result in wasted time spent on properties that aren’t a good fit for your client. Always carefully review the use description, and confirm the allowed activities directly with the city.
Zoning Variability Across Cities
Zoning in California is anything but uniform. Here’s what I encountered:
In Colton and Corona: M-1 zoning requires a Conditional Use Permit (CUP).
In Fontana: M-1 and M-2 zoning requires a CUP.
In Lake Elsinore: M-1 zoning permits collision centers.
In Rancho Cucamonga: Collision centers are allowed in Neo-Industrial zoning, which doesn’t follow traditional M-1 or M-2 designations.
In Rialto: M-1 zoning permits collision centers.
In San Bernardino: Even in heavy industrial (IH) or light industrial (IL) zones, a CUP is required—effectively making collision centers unwelcome.
What works in one city may be entirely off-limits in another, underscoring the importance of thorough research.
Unseen Challenges and Obstacles
Even when a collision center is permitted, other restrictions can complicate the process. For instance:
Outdoor Storage Prohibitions: Some cities allow collision centers but prohibit outdoor storage.
Definitions Vary: Is parking considered outdoor storage? It depends on the city, and getting clear answers often requires clarification.
Private Restrictions: CC&Rs (covenants, conditions, and restrictions) in business parks can override zoning allowances.
Specific Plans: These plans add additional layers of zoning, creating zoning within zoning.
Examples Include:
Fontana Southwest Industrial Park Specific Plan Freeway Industrial: Requires CUP
Fontana Gateway Specific Plan: Permitted
Ontario California Commerce Center South Specific Plan: Industrial zones permit collision centers; business park zones do not.
Riverside Northside Specific Plan: Business Office Park zones require a Minor Conditional Use Permit.
These nuances significantly narrow the pool of viable properties and require constant diligence when reviewing zoning codes and consulting with planners.
How Zoning Affects Property Searches
Zoning restrictions didn’t directly affect the lease terms for this project, but they severely limited the number of available properties. Flexibility became essential—whether considering lease or purchase options or expanding the search area.
Preparation and flexibility were key to securing the right property.
Zoning’s Broader Implications
Zoning changes are also affecting the future of business locations. As cities in California update their zoning codes through specific plans and new wave zoning labels—property availability becomes more restricted. While stricter zoning can create barriers for new businesses, it also protects existing ones by limiting competition in certain industries. As zoning codes evolve, industries like auto repair and collision centers face increasing challenges in securing suitable properties, often making the search more complex and prolonged. Additionally, the acceptance of the use by landlords is another challenge, though not directly related to zoning.
Lessons Learned
For anyone navigating zoning in California, here are three takeaways:
Do Your Homework: Study zoning maps, codes, and specific plans before engaging with a property.
Be Prepared: Flexibility and patience are key. Have financial documents ready, secure pre-approvals, and explore all options whether leasing or purchasing.
Communicate: Consult city planners early and often to confirm zoning details and avoid surprises.
Final Thoughts
Zoning plays a crucial role in guiding community growth and ensuring orderly development, but in practice, it often creates barriers that hinder growth. While zoning codes are intended to protect communities, their inconsistency across neighboring cities can create confusion, particularly for specialized industries like collision repair.
For businesses like Keywest Auto Collision Center, navigating these complexities can make or break an expansion opportunity. This process emphasized the importance of preparation, persistence, and flexibility. Special thanks to my colleague Raymond Lam , whose research on potential sites, made our search more efficient.
Standardizing zoning labels within a county or regional area could save time and simplify the process, helping businesses navigate zoning codes more easily while still allowing cities the flexibility to address local needs. However, cities will likely continue to adopt specific plans in order to fulfill the State's housing mandate, which could put us back at square one. Although it's not a perfect solution, a regional approach to zoning labels is a step in the right direction.
Until more comprehensive reforms are made, zoning will remain a challenge that requires business owners and professionals to stay diligent and adaptable.