Neighborhood Serving Zones

The arrival of national chain stores often drives-up commercial rents, forcing out small, locally owned businesses that serve the everyday needs of the surrounding neighborhood. This typically occurs when a shopping area becomes a destination for tourists or others who live outside of the immediate area.

Neighbors may find their local hardware store or grocery replaced by chain restaurants, apparel stores, and other businesses that can afford to pay higher rents. Enacting a neighborhood serving zoning law can prevent this by requiring that new retail stores demonstrate that a majority of their sales will be derived from the surrounding neighborhood.

Cities can look to Palm Beach, Florida, which converted their main commercial district into a "town-serving zone," capping its stores at 2,000 square feet and requiring them to serve primarily "town persons: those living or working in Palm Beach.” Businesses larger than 2,000 square feet can apply for a special exception use permit provided they can convince the City Council that not less than 50 percent of their anticipated customers will be "town persons".

Click here to see more on Neighborhood Serving Zones from New Rules.

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