Demystifying Entitlements in Real Estate: What They Are and How to Secure Them

By Michael ChenLast Updated April 21, 2025

Introduction: Why Entitlements Matter in Real Estate

In real estate development, entitlements are the vital legal approvals needed to use land for specific purposes. Whether you’re eyeing vacant land for a new project, renovating an existing property, or seeking to change the use of a building, understanding entitlements is essential. These permissions, granted by local government agencies, determine what can be built, how it can be used, and often, the financial potential of a property. Navigating the entitlement process can add significant value to real estate, but it also requires careful planning and compliance with local regulations. [1]

What Are Entitlements?

Entitlements in real estate refer to the specific legal permissions granted by a governing agency allowing property to be developed, redeveloped, or used in a particular way. Unlike the general rights all property owners enjoy, entitlements are
tailored approvals
-for example, the right to build a residential complex on land currently zoned for agriculture, or to convert an old warehouse into mixed-use retail and office space. [1] These permissions are not automatic; they must be applied for and secured before any substantive development work can begin. [2] Entitlements may cover aspects such as:

Zoning changes or variances
Land use permits
Density allowances
Design approvals
Infrastructure and utility permits
Occupancy certificates

Securing entitlements can increase a property’s value, as land with approved development rights is often worth more than unentitled land. [1]

The Entitlement Process: Step-by-Step

The process of obtaining entitlements is methodical and typically involves the following steps:

Research and Due Diligence: Begin by reviewing the city or county’s
general plan
and zoning maps to understand the current allowable uses and the likelihood of approval for your project. [1] Contact the local planning department or visit municipal websites for guidance. [2]
Pre-Application Consultation: Many municipalities offer (or require) a pre-application meeting with planning staff to discuss the project, identify potential issues, and outline required studies or documentation. [3]
Formal Application Submission: Submit a detailed application, including site plans, project descriptions, and any required technical studies (e.g., environmental impact, traffic analysis). [3]
Public Review and Hearings: Most entitlement applications are subject to a public review process, which may include notifications, comment periods, and public hearings before planning commissions or city councils. [3]
Agency Review: Planning, zoning, fire, public works, and environmental departments review the application for compliance with codes and regulations. [5]
Decision: The local governing body approves, denies, or requests modifications to your application. Approval may come with conditions that must be met. [5]
Post-Approval Actions: Once entitlements are secured, you can apply for building permits and proceed with construction. If denied, you may appeal or revise your proposal. [5]

The process can take
several months to over a year
, depending on the complexity of the project and local regulations. [5]

Types of Entitlements

Entitlements cover a broad range of permissions. The most common types include:

Ground-Up Build Entitlement: Required for developing previously undeveloped land. This involves approvals for zoning, utilities, and infrastructure. [4]
Change-of-Use Entitlement: Needed when converting a property from one use to another, such as transforming an industrial building into residential apartments. This often requires zoning code updates and new occupancy permits. [4]
Facade or Design Approvals: Even modifications to the exterior appearance of a building may require specific entitlements, especially in areas with design guidelines. [4]
Subdivision Approvals: Necessary for splitting land into multiple parcels for sale or development. [1]
Environmental and Infrastructure Permits: Many projects require separate entitlements for stormwater, utilities, or to address environmental impacts. [3]

Real-World Example: The Longhorn Acres Development

A practical illustration comes from Boise, Idaho, where a developer sought to transform farmland into a master-planned community, “Longhorn Acres.” The land was zoned for agriculture, so the developer needed to secure entitlements for mixed-use development. This required:

Rezoning from agricultural to mixed-use
Submitting detailed site plans
Completing environmental and traffic impact studies
Participating in public hearings to address concerns
Gaining final approvals from the city council

Only after meeting all requirements could construction begin. [3]

Challenges and Tips for Navigating the Entitlement Process

The entitlement process can be complex, time-consuming, and sometimes contentious. Common challenges include:

Community Opposition: Residents may object to increased density, traffic, or changes to neighborhood character. Engage with stakeholders early and address concerns proactively.
Environmental Regulations: Projects near sensitive habitats or waterways may trigger extensive reviews and mitigation requirements.
Changing Political Climate: New local leadership or policy shifts can impact entitlement outcomes.

Solutions and Best Practices:

Start with detailed due diligence to anticipate zoning, environmental, or infrastructure challenges.
Engage a local land use attorney or planning consultant experienced in the target jurisdiction.
Maintain open communication with planning staff and the local community.
Prepare for possible revisions and allow extra time for reviews.

How to Get Started with the Entitlement Process

If you are considering a development project, follow these steps to begin navigating entitlements:

Contact your local city or county planning department to obtain current zoning and land use information for your property.
Ask about the municipality’s general plan and specific area plans that may affect your project.
Request a pre-application meeting if available, and ask for a checklist of required studies and documents.
Research recent local projects similar to yours to understand typical review timelines and community concerns.
If possible, consult with a real estate attorney or land use consultant who understands the entitlement landscape in your market.

Most municipal websites provide zoning maps, planning documents, and contact details for planning staff. If you cannot find local information online, visit city hall in person or search for your city’s official website using terms like “[Your City] Planning Department” or “[Your County] Zoning Office.”

Alternatives and Special Considerations

In some cases, property owners may pursue alternatives such as:

Variances: Requesting exceptions to zoning rules for unique property conditions.
Conditional Use Permits: Allowing uses not typically permitted in a zone, subject to specific conditions.
Development Agreements: Negotiating with local governments for customized entitlements in exchange for public benefits or infrastructure improvements.

Each option has unique requirements and review processes. Consulting with professionals is strongly recommended.

Key Takeaways

Understanding and securing entitlements is an essential step in unlocking the full potential of real estate. Whether developing raw land or repurposing existing buildings, the entitlement process ensures compliance with local regulations and community standards. While the process can be lengthy and complex, proactive research, community engagement, and professional guidance can help you move from concept to construction successfully.