When Do Commercial Developers Need Change-of-Use Permits?

 Posted on January 31, 2026 in Commercial Real Estate

Commercial development in Illinois is growing fast. Last year alone, the state reached a record $13 billion in incentivized investments according to the Illinois Department of Commerce and Economic Opportunity. With this growth comes important questions about zoning and permits. One of the most important permits commercial developers need to understand is the change-of-use permit.

A change-of-use permit is required when you want to change how a commercial property is used. For example, if you want to turn an old warehouse into a restaurant or change a retail store into an office building, you need approval from your local municipality. The process can be complex, and mistakes can delay your project for months or even force you to redesign your plans completely.

Our Naperville commercial development attorneys excel at helping drive projects forward with transactions that are smooth, legally compliant, and profitable. Call us at 630-778-3818 to learn more about change-of-use permits and how they may apply to your situation. 

When Do Commercial Developers Need Change-of-Use Permits?

You need a change-of-use permit whenever you plan to use a commercial building for a purpose different from its original approved use. Illinois law does not generally recognize a distinct, universally defined "change-of-use permit." Rather, changes in use are typically approved through zoning compliance, special/conditional use permits, variances, rezoning, amendments to a PUD, etc.

This applies even if you are not making any physical changes to the building itself. The reason is simple: Different types of businesses have different impacts on things like traffic, parking, noise, and public safety.

Under the Illinois Municipal Code at 65 ILCS 5/11-13-1, municipalities have the power to regulate land use through zoning ordinances. These ordinances divide areas into different zones like commercial, industrial, and residential. Each zone has rules about what types of businesses can operate there.

Common Situations That Require Change-of-Use Permits

Here are typical scenarios where you need a change-of-use permit in Naperville or DuPage County:

• Converting a retail space into a restaurant or bar

• Changing an office building into a medical clinic

• Turning a warehouse into a fitness center or entertainment venue

• Converting residential property into commercial use

• Changing from one commercial category to another with different parking or safety requirements

Even changes that seem minor can trigger permit requirements. Moving from a quiet office use to a high-traffic retail use affects parking needs and neighborhood impact. The city wants to review these changes before they happen.

What Is a Planned Unit Development and Why Does It Matter?

Many commercial developments in Illinois go through a special approval process called a Planned Unit Development or PUD. This is especially common for larger projects or mixed-use developments that combine different types of businesses or uses in one location.

A PUD gives developers more flexibility than standard zoning rules. Instead of following rigid requirements for lot sizes, setbacks, and building heights, developers can propose a comprehensive plan that might bend some rules while still meeting the community's overall goals. The trade-off is that PUDs require more detailed review and approval.

Why Commercial Developers Choose PUD Zoning

PUD approval makes sense for several reasons:

• You can mix different uses in one development like retail shops, offices, and restaurants

• You get flexibility on parking, building placement, and design standards

• You can create shared spaces and amenities that benefit multiple tenants

• Your entire development gets approved as one unified project

Large commercial development projects often undergo this change-of-use process through PUD agreements. The agreement locks in what uses are allowed and sets standards for the entire development. This protects both the developer and the municipality by making expectations clear from the start.

The PUD Application Process

Getting PUD approval takes time and preparation. You need detailed site plans, architectural drawings, traffic studies, and proof that your project benefits the community. The review involves multiple city departments and usually requires public hearings where neighbors can comment on your proposal.

Once approved, your PUD agreement becomes part of the public record. If you want to change uses later, you may need to amend the PUD agreement, which means going through another approval process.

How Do You Get Change-of-Use Approval in Naperville?

The approval process starts with understanding your local zoning ordinance. In Naperville, for example, you can review zoning regulations through the city's planning department. You need to confirm whether your proposed use is allowed in your current zone, requires a special permit, or needs rezoning. Other cities in DuPage County have their own zoning authority, and DuPage County’s rules apply mainly to unincorporated areas. 

Steps to Obtain Change-of-Use Approval

The typical process includes these steps:

• Schedule a pre-application meeting with city staff to discuss your plans

• Submit a formal application with detailed information about your proposed use

• Provide site plans, parking calculations, and any required impact studies

• Attend public hearings before the planning commission or zoning board

• Obtain final approval from the city council if required

• Secure building permits for any physical modifications

The review considers factors like parking availability, traffic impact, compatibility with surrounding uses, and compliance with building codes. Projects that require significant changes or that neighbors oppose take longer to approve.

Common Obstacles in the Approval Process

Many developers run into problems because they underestimate the complexity of zoning law. Issues that can derail your application include insufficient parking for the new use, conflicts with neighboring properties, environmental concerns, or failure to meet accessibility requirements under state and federal law.

Working with an experienced attorney who understands both zoning regulations and commercial real estate transactions helps you anticipate these issues before they become problems. Our attorneys can review your plans, identify potential obstacles, and help you prepare a stronger application.

Call a Naperville, IL Commercial Real Estate Lawyer Today

Navigating change-of-use permits and PUD agreements requires careful attention to local zoning laws and development procedures. Whether you are planning a new commercial development or changing an existing property's use in 2026, our DuPage County commercial development attorneys make the process more likely to succeed.

Attorney Lindell has an advanced real estate degree and works to ensure smooth, compliant, and profitable transactions for commercial developers. Call Lindell & Tessitore, P.C. at 630-778-3818 to discuss your commercial development project and learn how we can help you move forward.