Nantucket's Restrictive Zoning

Nantucket offers something increasingly rare: access to a highly desirable luxury market with significant barriers to entry for national and international retailers.

In 2006, the Town of Nantucket adopted its Formula Business Exclusion District regulations to preserve the distinctive character of the island’s historic downtown. The regulations generally restrict retail, restaurant and similar businesses with multiple locations from operating within the district when they maintain standardized features such as merchandise, branding, interior design, color schemes or employee uniforms.

As a result, many established national brands cannot simply open a conventional store in downtown Nantucket. Growing brands should therefore consider establishing a Nantucket presence before their expansion and standardized operating model place them within the formula-business definition.

However, having more than 10 locations does not necessarily eliminate every opportunity. A larger brand may be able to develop a genuinely distinct Nantucket concept that complies with the bylaw.

Roller Rabbit recently demonstrated one possible approach. After its original Nantucket store was found to violate the formula-business regulations, the company created The Roller Rabbit General Store—a differentiated, multibrand concept with a unique name, modified design and merchandise mix in which no more than 50% of the products are Roller Rabbit merchandise.

After reviewing the revised concept, Nantucket’s Building Commissioner determined that the store could operate within the Formula Business Exclusion District.

This example illustrates that established brands may still have a path into the Nantucket market when they are prepared to create a location specifically tailored to the island and obtain confirmation that the proposed concept complies with local requirements.

Service-oriented businesses, including certain financial and professional-service providers, may also be treated differently depending upon their proposed use and operating model.

Click to Learn more about Zoning ReGulations

Copyright © 2021 33 Main Street, Nantucket MA - All Rights Reserved.The terms set forth in this Presentation are not intended to be complete or final. This material is for information purposes only and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. It does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase any investment nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract. No representation warranty or undertaking express or implied is given as to the accuracy or completeness of the information or no representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document by Hays Ventures, LLC its members or employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions.

#NantucketRealEstate, #CommercialProperty, #NantucketRetailSpace, #SellingNantucket, #LeasingNantucket, #NantucketBusinessProperty, #NantucketForRent, #NantucketPropertyForSale, #NantucketCommercial, #InvestInNantucket #CashFlow, #Nantucket, #RetailSpace, #ShopNantucket, #NantucketRetailLease, #1031Exchange, #RealEstateInvestment, #PropertyExchange, #TaxDeferral, #InvestmentProperties, #RealEstateInvestor, #CapitalGainsTax, #CommercialRealEstate, #PropertyInvestment, #RealEstateLaw, #NantucketRetail, #Loopnet, #InvestmentProperty, #ACK, #ACKRetail, #CREXI, #Costar, # PrimeRetail, #ArtGallery, #NantucketOfficeSpace

Nantucket's Restrictive Zoning

This website uses cookies.