Commercial Real Estate for New Jersey Businesses

In a triple net (NNN) lease the tenant pays base rent plus its share of property taxes, insurance and common-area maintenance. In a gross lease the landlord covers most operating costs from a higher rent. A modified gross lease splits costs between the two in a way the lease defines. Because the labels vary in practice, compare the total cost of occupancy and read exactly which expenses pass through.

Zoning is set by each municipality’s ordinance, which lists permitted and conditional uses for each zone. Start with the zoning map and ordinance, then confirm with the zoning officer. If a use is not permitted, the municipality’s zoning board of adjustment can grant a use variance under the Municipal Land Use Law, but approval is not guaranteed and takes time, so build it into your contract or lease contingencies.

Yes. Under New Jersey’s Uniform Construction Code it is unlawful to change the use of a building or part of a building without first applying for and receiving a certificate of occupancy, and the building must meet the Rehabilitation Subcode for the new use. Construction permits are generally required for alterations, so factor the permit path into your timeline.

The three-business-day attorney review clause required by the New Jersey Real Estate Commission applies to licensee-prepared contracts for homes with one to four units and vacant one-family lots, and to residential leases of a year or more. Commercial purchase contracts and leases are usually negotiated and drafted with attorneys from the start, which is why I bring your attorney in early.

SBA 504 and 7(a) loans can finance owner-occupied commercial real estate. For an existing building, the business must occupy at least 51% of the rentable space and may lease out the rest; new construction requires at least 60% occupancy. SBA 504 loans cannot be used for speculation or investment in rental real estate. Talk with an SBA lender or Certified Development Company early.

The seller pays the Realty Transfer Fee when the deed is recorded. For Class 4A commercial property sold for more than $1 million, the Graduated Percent Fee also applies to the seller, and if a controlling interest in an entity that owns Class 4A commercial property is transferred, the Controlling Interest Transfer Tax now falls on the seller, at graduated rates from 1% to 3.5%. Your attorney confirms how these apply to your deal.

Usually. A buyer of business assets, including income-producing real property, must file Form C-9600 with the New Jersey Division of Taxation at least 10 business days before closing. If the notice is late, the buyer can become responsible for the seller’s state tax obligations.

Yes. New Jersey requires every seller of real property, including non-residential property, to complete the Flood Risk Addendum before the buyer becomes obligated under the contract. It covers FEMA flood zone status and any flooding the seller knows about.

Yes. I represent buyers, sellers, landlords and tenants across warehouse and industrial, medical office, restaurant, retail, office and mixed-use property. For tenants, that includes defining requirements, touring options, comparing total occupancy costs and negotiating lease terms alongside your attorney.