Entitlement refers to the process of obtaining the government approvals required to develop, redevelop, or change the use of a piece of real estate. Depending on the jurisdiction and project, this can include zoning approval, variances, site plan review, environmental clearances, and utility or infrastructure permits. Entitlement work is typically completed before construction begins and can take anywhere from several months to several years depending on local regulations and the complexity of the proposed project.
Because entitlement outcomes are uncertain and often contested by neighboring property owners or local governments, land that has already secured its approvals, known as entitled land, commands a meaningful premium over land that is still raw or unentitled. Developers and investors who take on entitlement risk are compensated for that uncertainty through the value created once approvals are in hand, sometimes called entitlement lift. This step is a central milestone in ground-up development underwriting, since financing, construction timelines, and the overall viability of a project typically depend on securing the necessary entitlements first.
Further reading: Real Estate Investment Strategies for Accredited Investors in 2026
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