San Diego Blood Bank Opens New Office in Irvine
While the general office market faced significant challenges during the pandemic due to the shift to remote work and indoor risk mitigation protocols, the medical-related office sector continued to grow. That encouraged office property landlords to pursue medical-related businesses as potential tenants for their vacant space. However, zoning regulations are different for these users, so gaining necessary occupancy permits from city agencies can be difficult, confusing and time-consuming. Having proper representation from a real estate professional or in our case, owner experienced in the field is a must in order to streamline the process and optimize the chance of success. Our team at the Kelemen Company has the expertise and resources to help tenants and their prospective landlords to do just that. In the following Q & A, Tibor Kelemen, CEO and Found of The Kelemen Company addresses the key components of this important topic:
Most people consider San Diego Blood bank as a medical facility. What are the factors that allowed them to be in an office building?
Blood banks are considered quasi-medical use like physical therapy, psychiatry, acupuncture, wellness centers, etc. Many cities do not require medical parking ratios, provided one can demonstrate similar hours of operation and similar in-person use to an office user. We demonstrated that to The City of Irvine and granted them a business license.
What are the requirements?
Getting a quasi-medical use approved by The City often starts with a Use Determination letter submitted to the planning department. Through that process, one can establish whether a use meets the office definition and if it requires a greater parking ratio. As was the case with the San Diego blood bank, we demonstrated that they do not require additional parking, and they use the space similar to an office user. However, the City did require us to take a further step and obtain a Conditional Use Permit (“CUP”).
How long was the process?
Obtaining a Use Determination usually takes a couple of weeks, provided the application adequately describes the intended use of the space. A poorly written application often eliminates a tenant’s chances altogether. However, getting a successful CUP approval takes several months and a lot more experience. From application submittal to getting on The City Council agenda, and to an actual approval, in many cases, ends up becoming a four to six months’ process. Inexperienced Landlords often miss opportunities to secure a quasi-medical tenant, either because they do not know the zoning code or do not understand the process.
Kelemen Company experience with unique transactions makes them a valuable resource to tenants and owners.
If you are interested in learning more about investing in commercial real estate, or if you have questions about asset or property management, contact us at [email protected] or 949.668.1110.
