Verify everything before signing a commercial lease in New York City.
Confirm the C of O permits your intended use. A retail C of O does not permit restaurant use. An office C of O does not permit medical use. Mismatched use can result in DOB violations and forced closure.
Verify the zoning district permits your business type. Some uses require special permits. Check for use group restrictions and any special district requirements that may apply.
Search DOB, HPD, FDNY, and ECB for open violations. Determine who is responsible for correction under the lease terms. Understand if violations may affect your ability to operate.
Check for any active construction permits. Ongoing landlord work may affect your build-out timeline. Ensure your own build-out will not conflict with existing permits or pending approvals.
Verify that the building meets ADA accessibility requirements for your use. Check for accessible entrances, bathrooms, and paths of travel. Non-compliance can result in costly modifications and lawsuits.
For ground-floor or below-grade spaces, check for environmental contamination, flood zone status, and DEP requirements. Food service businesses need DEP grease trap approvals.
Confirm adequate electrical capacity, gas service, water/sewer connections, and HVAC for your intended use. Utility upgrades can be extremely expensive and time-consuming in NYC.
If the building is landmarked or in a historic district, exterior modifications require Landmarks Preservation Commission approval. This can significantly limit signage, facade changes, and build-out options.
Signing a commercial lease in NYC without proper due diligence can lead to costly surprises. This checklist helps tenants and their advisors verify critical building and regulatory factors before committing.
RegWatch provides instant access to C of O records, zoning information, violations, and permits. Before signing a lease, search the property on RegWatch to identify any red flags that could affect your business.
RegWatch automates many of these checks by aggregating data from DOB, HPD, ACRIS, and other NYC agencies. Save hours on every property.
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