In 2023, North American retail vacancy rates declined to record lows, and less than 50 million square feet of new space was delivered to the U.S. retail market.  As a result, finding quality retail space for lease has become increasingly difficult, thereby forcing retailers to change how their businesses operate in their existing location.

And change certainly is necessary, particularly for larger retailers like grocery store chains and “big box” stores.  The influx of personal shoppers; curbside pickup and delivery; buy online, pick-up or return in store policies; Amazon lockers; and “reverse logistics” platforms, like Happy Returns, a UPS company that handles online product returns for a variety of retailers, have transformed the daily operation and physical footprint of the average retailer.  What once was an exclusive retail use, has now morphed into some combination of retail, office, warehouse, and logistics uses.

As a result, standards established by a prior zoning approval may no longer apply.  In fact, retailers may be unable to comply with old land use approvals as their business needs evolve.  A quick review of typical zoning regulations reveals that the following standards may be impacted as a result of these new retail features:

• Building size – some retailers will need to expand their footprint to accommodate additional deliveries and goods storage.
• Parking – the number of parking spots needed on-site may change as a result of shoppers spending less time in stores and, instead, relying on curbside pickup. Designating certain parking areas for curbside pickup or employee parking may also be necessary.  Additional parking and loading space for deliveries may also be a concern.
• Traffic – the number of traffic trips and the anticipated distribution of traffic in and around the site may change.  Retailers should pay particular attention to vehicle and pedestrian circulation in and around their sites.  Ensuring that emergency access is preserved is very important.
• Signage – with changes to parking and traffic, new signage likely will be required.
• Lighting – enhanced or altered lighting to accommodate new features should also be considered.

Failure to plan for these changes may have far-reaching implications.  For example, one study details how the rise of e-commerce goods deliveries has caused a rapid rise in the demand for curbside space, which, when insufficient, may cause traffic congestion issues and result in illegal parking, both of which present possible safety concerns.

Given the above, it comes as no surprise that additional land use approvals may be required.  To add yet another layer of potential complication:  it is quite possible that local zoning regulations have not “caught up to” these new retail trends, thus forcing a retailer-applicant to either plow forward with outdated regulations or seek to revise existing regulations to reflect current retail trends.

Unfortunately, neither approach is a guaranteed path forward.  Land use approvals can be lengthy and complicated and, at times, contentious.  If possible, retailers should incorporate changes to their retail sites in a manner that will not trigger land use review.  Although determining what modifications will trigger land use review will vary by municipality, retailers may consider, for example, incorporating additional on-site signage if local regulations permit it as of right.  If more significant changes are needed, consulting with land use counsel during the early stages of development will be key.  Certain modifications may require administrative (staff) approval, which will often take less time than an application to a local board or commission.  Our land use team has guided numerous clients through these emerging challenges and is fully prepared to collaborate with you to achieve effective and favorable resolutions to your land use matters.