If you’re engaged in commercial real estate in any way but aren’t familiar with a Certificate of Occupancy, you’d better buckle up. It’s a critical piece of CRE’s legality, whether you’re constructing new properties, renovating existing ones, or even changing a commercial structure’s use. A Certificate of Occupancy, sometimes abbreviated as CO, is issued by your local building or zoning authority. In addition to confirming that a building conforms to relevant building codes and zoning laws, it verifies that a structure is safe for occupancy. So, how do you go about getting one for your building?
Step 1: Submit All Permit Applications and Plans
A Certificate of Occupancy can’t be obtained until you’ve broken ground on construction, supported by the necessary permits, including any architectural and engineering plans that need official review. In addition to other local relevant ordinances, it’s important that these documents illustrate compliance in matters of:
- Accessibility
- Building codes
- Fire codes
- Zoning
Larger commercial projects may also require the approval of specific departments, including:
- Building Department
- Environmental or Public Works
- Fire Marshal
- Health Department
- Zoning/Planning Department
Step 2: Stick to the Plans
The issuance of permits hits the green light for construction. But it’s crucial to follow the approved plans and code requirements to the letter for each step of the development. Wandering from the officially approved path can lead to big delays as you chase up amended permits, thus further pushing the Certificate of Occupancy back in the queue.
Step 3: Inspections
Inspections will take place during and following construction. These will be ordained by your local business authority, and will commonly include:
- Accessibility
- Electrical
- Mechanical
- Plumbing
- Safety (fire and general)
- Structure
You can also expect a final overall inspection to conclude this process. You’ll be required to pass each phase of inspection before proceeding to the next. Therefore, it’s crucial that you don’t miss any of your appointed inspection times. Doing so could delay your Certificate of Occupancy issuance, while running the risk of financial penalties and legally required construction amendments.
Step 4: The Final Inspection
After all of your individual inspections are successfully completed, your property will be subject to a final inspection and compliance review. The final inspection will assess that:
- The building complies with safety and structural regulations
- Systems (such as HVAC, fire response, etc.) are properly in place and functioning correctly
- The building’s stated use is accurate
- Municipal standards of parking, landscape, and signage are being met
- Accessibility features are in ADA compliance
Once the final inspection is successfully cleared, the inspector will officially recommend the issuance of your Certificate of Occupancy.
Step 5: Receive Your Certificate of Occupancy
Upon completion of the necessary paperwork, you will receive your Certificate of Occupancy. In most cases, the document will include:
- Address
- Intended Use/Occupancy Classification
- Issuance Date
- Occupancy Limit
- Permit Numbers
- Zoning Details
Now armed with your Certificate of Occupancy, tenants can legally move into your property, businesses can open their doors to the public, and, perhaps most importantly for investors, transactions can close.
Certificates of Occupancy in California
When pursuing your Certificate of Occupancy, it’s important to remember that California is a lot more strict with commercial properties than many other states. Therefore, inspections will be comprehensive, analyzing factors like environmental and seismic standards and, depending on where the building stands, wildfire and flood zone compliance. Likewise, local jurisdictions can sway the specifics of processes, so it’s always a good idea to work with a local commercial real estate agent you trust.
