What is a certificate of occupancy in commercial property management?

A certificate of occupancy is a crucial document in commercial property management, as it serves as confirmation that a building has met the required safety and building codes set forth by local jurisdictions. This certificate indicates that the property is fit for use and can be legally occupied, thus ensuring the safety of its occupants and compliance with zoning regulations.

Obtaining a certificate of occupancy typically involves inspections by local building authorities, who assess various aspects of the structure, including electrical, plumbing, and fire safety systems. The significance of this document lies in its role in legal compliance; without it, a property owner may face penalties or legal issues if tenants occupy the space without proper authorization.

Understanding this document is essential in property management, as it not only affects tenant safety but also impacts the property's marketability and the owner's ability to lease the space.