By: Richard A. Herman, Esq., October 25, 2025
New space should accelerate your business, not stall it in permits, delays, or surprise costs. Before you sign, here’s a practical New Jersey specific checklist to protect your timeline and budget.
At-a-Glance (Do These First)
• Confirm your use is legal: Have a New Jersey land-use attorney confirm the property’s local zoning under New Jersey’s Municipal Land Use Law (MLUL) to be sure your exact use is permitted in that location. If approvals are needed, build them into your timeline.
• Understand the Certificate of Occupancy (CO): Under the Uniform Construction Code (UCC), most spaces can’t be legally used until a CO, or sometimes a temporary CO, is issued after inspections. Tie rent start to the CO.
• Map the dates: Spell out delivery of the space, permit submission, build-out, CO, and rent commencement (when you actually start paying).
• Know the real cost: Beyond base rent, budget for Common Area Maintenance (CAM), taxes, insurance, utilities, and build-out.
• Lock in protections: Seek reasonable cure periods, Subordination, Non-Disturbance & Attornment Agreement (SNDA) with the landlord’s lender, assignment/sublease rights, and fair casualty/repair language.
What NJ law says:
• Leases over 3 years must be in writing. New Jersey’s Statute of Frauds (N.J.S.A. 25:1-12) makes leases longer than three years unenforceable unless the core terms are in a signed writing (or proved by clear and convincing evidence).
• Zoning controls your use. The MLUL authorizes each town’s zoning and approvals and requirements vary by municipality. Communications with a Zoning Officer are not binding, so it’s important to talk with a zoning attorney to verify the local code or call the Clerk/Planning/Zoning office before you sign.
• You generally need a CO to open. The UCC (N.J.A.C. 5:23) requires a CO before you use or occupy most spaces; coordinate inspections and build-out so you’re not paying rent while waiting on approvals.
• Commercial evictions are “summary dispossess.” If a default happens, commercial removal is governed by N.J.S.A. 2A:18-53 (different from residential protections).
• Recording gives public notice. For long terms or options, consider recording a short Memorandum of Lease so lenders/buyers have notice under N.J.S.A. 46:26A-12.
Common pitfalls (and how to avoid them)
• Rent starts on “delivery,” not CO, so you pay while waiting on permits. Tie rent commencement to CO or to a firm outside date with remedies.
• One-sided repairs/casualty. Clarify who handles roof/structure, building systems, and whether rent abates after major damage.
• Cramped “use” clause. Ensure it covers your current operations and near-term growth (signage, hours, related product lines).
• No assignment/sublease or guarantee “sunset.” Preserve flexibility if you sell, merge, or outgrow the space.
• No SNDA. Without lender “non-disturbance,” you risk a lock-out if the landlord’s loan is foreclosed.
What to do now (practical steps)
1. Verify zoning and approvals with the municipality for your exact use (e.g., “coffee shop with light food prep,” not just “retail”).
2. Build a timeline: delivery → permits → build-out → inspections → CO → rent start.
3. Price the full occupancy: base rent + CAM/taxes + insurance + utilities + build-out + downtime.
4. Negotiate key protections: cure periods, assignment/sublease, SNDA, exclusive-use rights, fair casualty/rebuild, and clear renewal/expansion options.
5. For long terms/options, record a memorandum after you sign.
What to bring to your free consultation (so we can move fast)
• Your LOI or draft lease, if any, and any building rules/specs.
• A one-page use description (hours, headcount, deliveries, equipment, signage).
• Budget & timing targets (desired opening date and rent start).
• Any lender forms (SNDA/estoppel) and insurance requirements.
How we help
Don’t sign blind. Semeraro & Fahrney, LLC reviews and negotiates commercial leases and coordinates with local officials on zoning, permits, and COs across North Jersey. We tailor terms to your use and opening date and flag risks before they become costs.
Request a free consultation today and we’ll review your LOI/lease and outline practical next steps for your New Jersey location.
Contact: info@semerarolaw.com | (973) 988-5070
Attorney Advertising. For informational purposes only; not legal advice. Reading this article does not create an attorney-client relationship. Past results do not guarantee a similar outcome.
Written by Semeraro & Fahrney, LLC, Wayne, NJ. Last updated September 2025.
