REURB in Business and Commercial Areas: Warehouses, Shopping Centers, and Corporate Buildings

Urban Land Regularization (REURB) is usually associated with low-income housing and residential settlements. However, Law No. 13,465/2017 does not restrict its application exclusively to residential use.

Industrial warehouses, shopping centers, malls, and corporate buildings can also benefit from the procedure, particularly when they were built without full urban planning approval or without annotation in the Real Estate Registry Office.

This article analyzes how REURB can be applied to the business and commercial sector, what practical benefits it brings, and the specific challenges in such cases.

1. The Current State of Irregularity in the Business Sector

Companies and investors frequently encounter properties in irregular situations:

·         Industrial warehouses built in urban expansion areas without municipal approval;

·         Corporate buildings erected with unrecorded alterations in the Property Registry;

·         Shopping centers and malls operating without a Fire Department Inspection Certificate (AVCB);

·         Business condominiums lacking individualized title registration for each unit.

These irregularities compromise not only legal certainty but also the functioning of business activities.

2. Applying REURB to Commercial Properties

REURB may be applied to business or commercial complexes provided the legal requirements are met:

·         Consolidated occupation prior to December 22, 2016;

·         Existence of permanent use recognized by the Municipality;

·         Urban compatibility with local zoning.

2.1. Modality

In practice, these cases are treated as REURB-E (Specific Interest) since they involve medium- and high-standard developments with no social housing character.

2.2. Steps

·         Regularization of the “as built” plan of the development;

·         Municipal approval and issuance of the Urban Land Regularization Certificate (CRF);

·         Registration at the Property Registry Office, with opening of individualized titles;

·         Compliance with safety standards, particularly those required by the Fire Department.

3. Benefits of REURB for the Business Sector

3.1. Asset appreciation and liquidity

Regularized properties can be used as collateral in financing, attract investors, and increase in market value.

3.2. Legal certainty

Companies can operate in full compliance with the law, avoiding risks of shutdown, fines, or public civil actions.

3.3. Expansion of business credit

With regular title registration, banks accept the property as collateral, making loans and working capital operations feasible.

3.4. Reduced civil and labor risks

Business environments lacking an AVCB or technical reports expose employers to civil and criminal liability in the event of accidents.

4. Specific Challenges of REURB in Commercial Areas

·         High costs: adaptation works in warehouses and shopping centers can be substantial;

·         Administrative complexity: regularization requires coordination among City Hall, Fire Department, environmental agencies (such as CETESB), and registries;

·         Diverging interests: in business condominiums, different investors may resist bearing expenses;

·         Environmental requirements: industrial areas often require additional environmental studies.

5. Practical Example

Consider a business condominium in Alphaville, with 100 commercial units occupied for over 15 years but lacking individualized title registration.

·         REURB would allow the opening of titles for each unit;

·         Investors could sell, finance, and register their properties;

·         The condominium would gain legal backing to charge condominium fees and manage the complex.

Conclusion

REURB is not merely a tool for social inclusion in low-income areas. It is also a business strategy for large commercial and industrial projects that remain in informal status.

Regularizing warehouses, shopping centers, and corporate buildings means:

·         Increasing asset value;

·         Expanding access to credit;

·         Reducing legal risks;

·         Strengthening collective safety.

In short: for entrepreneurs and investors, REURB is a passport to the formal market, transforming irregular properties into high-value assets fully integrated into the legal and economic system.