Off The MRKT

Your guide to New York real estate and more

Off The MRKT - Where New York's, Real Estate, Life Style, and Culture Converge

  • Real Estate
    • New York
    • Hamptons
    • Connecticut
    • Florida
    • Submit Your Open House
  • Food & Wine
    • Wine and Spirits
    • Where To Drink and Eat
  • Events
    • Events Gallery
    • Submit an event
    • Calendar Listings
  • The Look
    • Travel
    • Health and Beauty
    • Fashion
    • Lifestyle Guide
  • About

5 Mistakes to Avoid When Buying Commercial Real Estate in New York

June 20, 2022 by Jeremy Lindy

We all make mistakes, but learning from them makes us better. That's especially true with real estate. Despite the impact of Covid-19 on the global real estate industry, the commercial real estate market in New York City remains incredibly competitive, and mistakes will happen if you don't have enough information.

Below are six mistakes I see rookie and seasoned investors alike make when buying commercial real estate in New York. Before reading, I want to note that this is a list of mistakes. 

I am not saying that every company or situation mentioned will be a bad investment, but here are several examples of the above scenarios.

1. Avoiding a Commercial Real Estate Broker

If you're new to the commercial real estate game, you may want to avoid using a broker. However, working with a real estate broker when buying commercial property is important. They know the market, can help you find the right location, and negotiate the best price. Also, commercial real estate broker services come at no cost to the buyer - they get paid by the owner while protecting your interest when buying office or industrial properties.

For example, if you’re looking at residences with outdoor entertainment spaces, it's crucial to find a broker who specializes in those properties. And since you’re focusing on the New York market, they'll also guide you through the process of buying commercial real estate in the city while helping to ensure that everything else goes smoothly.

For example, if you’re looking at residences with outdoor entertainment spaces, it's crucial to find a broker who specializes in those properties. And since you’re focusing on the New York market, they'll also guide you through the process of buying commercial real estate in the city while helping to ensure that everything else goes smoothly.

2. Failing To Budget Enough for Both the Property Itself and Renovations

You may be tempted to cut costs by saving money on renovations, but this is not a good idea. If you don't have enough budget for renovations, your business could suffer if the building doesn't meet your needs or if it takes longer to get up and run than expected.

Say you’re eyeing the presently lucrative commercial real estate for sale in Staten Island, NY; try to get an estimate from an architect before signing any contracts to understand better what renovations will cost. If you're buying one that needs significant repairs, negotiate into your contract to have these repairs done within a specific timeframe (such as six months).

3. Not Understanding the Zoning and Land Use Laws

Zoning laws are important because they dictate what type of business can operate within a specific area. If your property is zoned for manufacturing, for example, you won't be able to operate a nail salon on the same premises as a factory.

You also need to check out what kind of businesses are allowed within each district and whether you're allowed to build something that falls outside those guidelines — like a new retail store or restaurant.

4. Not Thoroughly Reviewing the Lease Agreement

You should also thoroughly review all lease agreements before signing them. These documents contain details regarding rent payments, utilities, equipment requirements, and more. 

If there are any problems with these agreements after signing them, they can cause significant complications when trying to sell or lease out your building later on down the line.

5. Having No Concrete Exit Plan

If you're buying a building, you need to plan for the future. Even if your business doesn't grow as fast as you'd like, it's vital to have an exit plan in case things don't work out.

And while this may sound obvious, many people don't take the time to put one together before buying a commercial property. This practice will protect you from hidden surprises or issues lurking within these documents and ensure that everything is upfront and clear from the beginning.

Takeaway

If you, or someone you know, is currently looking to purchase a commercial property in New York City, I hope the information in this article proved helpful. NYC is an expensive and competitive place for commercial real estate.

Still, with a little bit of preparation, you can feel comfortable knowing that you're making the right decision for your business.

Featured
Luxurious Pools in Florida Residences: Your Ultimate Summer Oasis
Jun 12, 2025
Luxurious Pools in Florida Residences: Your Ultimate Summer Oasis
Jun 12, 2025
Jun 12, 2025
PH8  Terrace_credit Donna Dotan.jpg
Jun 12, 2025
Immerse Yourself in New York Theater From the Comfort of Your Home
Jun 12, 2025
Jun 12, 2025
BFA_50103_7179007.jpg
Jun 10, 2025
Zacapa Rum and Agua by Agua Bendita Bring Latin Elegance to the Lower East Side
Jun 10, 2025
Jun 10, 2025
manufacturedsidingshrubs-image1.jpg
Jun 10, 2025
New Beginnings: Why Manufactured Homes Are Great First Homes
Jun 10, 2025
Jun 10, 2025
Screenshot of Padel Press Release Selects - Dropbox.jpg
Jun 5, 2025
Swing in Style: Pickleball Becomes South Florida’s Hottest Luxury Amenity
Jun 5, 2025
Jun 5, 2025
Historic Nolita Townhouse Seamlessly Marries Old New York with Modern Living
Jun 3, 2025
Historic Nolita Townhouse Seamlessly Marries Old New York with Modern Living
Jun 3, 2025
Jun 3, 2025
unnamed (14).png
Jun 3, 2025
Upper East Side in Bloom: Why Downtown is Still Flocking Uptown
Jun 3, 2025
Jun 3, 2025
Featured
Jun 13, 2025
Making Transitions Easier - A Guide to Stress-Free Moves for Older Adults in the City
Jun 13, 2025
Jun 13, 2025
Jun 13, 2025
Buying a First Aid Kit: 7 Crucial Tips to Follow
Jun 13, 2025
Jun 13, 2025
Jun 13, 2025
Luxury Home Features Plumbing Upgrades for High-End Living
Jun 13, 2025
Jun 13, 2025
Jun 13, 2025
5 Mistakes to Avoid While Choosing Your Property Management Software
Jun 13, 2025
Jun 13, 2025
Jun 13, 2025
Elevate Your Everyday Carry with a Cool EDC Mechanical Pencil
Jun 13, 2025
Jun 13, 2025
Jun 13, 2025
City Parents’ Guide to Stress-Free Baby Care: Tips from NYC’s Leading In-Home Experts
Jun 13, 2025
Jun 13, 2025
Jun 12, 2025
10 Moving and Packing Tips for Your Smoothest Move Yet
Jun 12, 2025
Jun 12, 2025
Jun 12, 2025
How Insurance Helps Massage Therapists Manage Unexpected Risks
Jun 12, 2025
Jun 12, 2025
Jun 12, 2025
Viva Zen's Kratom Shot Is Now Available At NuWave Botanicals: Shop Today
Jun 12, 2025
Jun 12, 2025
Jun 12, 2025
Is Your Rent Too High? Real Estate Insider Jonathan Campau Explains How to Check — and What to Do if It Is
Jun 12, 2025
Jun 12, 2025
Jun 11, 2025
Why You Should Talk to Strangers More Often
Jun 11, 2025
Jun 11, 2025
Jun 11, 2025
From Nuisance to Neighbourhood Gem: Building Your Dream Luxury Home
Jun 11, 2025
Jun 11, 2025
Jun 11, 2025
Top Video-to-Video AI Generators to Enhance and Transform Footage
Jun 11, 2025
Jun 11, 2025
Jun 11, 2025
How to plan an old Hollywood engagement party
Jun 11, 2025
Jun 11, 2025
Jun 10, 2025
How to Set Up Your Phone for International Travel
Jun 10, 2025
Jun 10, 2025
June 20, 2022 /Jeremy Lindy
  • Newer
  • Older
 
Off The MRKT Articles RSS

Follow Off The MRKT: Facebook | Twitter | Instagram
Contact us: Jeremy@Offthemrkt.com                                                                                           

Advertise | Off The MRKT Internship Program | Byline | Bible

Want More?

Want more awesome content like this? Sign up and get our best articles delivered straight to your inbox!

Thank you!
Our favorite listing this week is 508 West 24th Street, Unit 5th Floor, home to NBA Player Carmelo Anthony. The ten-time NBA All-Star, has listed his New York City condo. The home is the largest unit in the Cary Tamarkin designed building at 508 W 24
251 East 51st Street, Unit 2M, listed on the market as a Compass "Coming Soon," is a recently renovated, perfect pied-a-terre (and ideal one bedroom for all the rest of us). What truly sets this pad apart from the rest is the dreamy outdoor
Our last #openhouse roundup will you be checking out this #parkslope home?

#nycrealestate #brooklynrealestate #milliondollarlistings #luxuryhomes #OffTheMRKT
DNA Development announced that closings have commenced at 350 West 71st Street, the successful Upper West Side luxury conversion that seamlessly combines two historic pre-war buildings into one stunning contemporary condominium with a classic fa&cced
Our favorite listing this week is located at One West End, the sculptural glass residential tower designed by Pelli Clarke Pelli within Riverside Center. At $19.5 million, 29B offers 5,302 square feet of interiors space, with four bedrooms, five and
Looking to live in one of the trendiest neighborhoods in Manhattan? SoHo offers some of the most luxurious prime New York Real Estate. Known for its largest collection of incredible architecture in the entire world, SoHo is the heart of the historic
Following the unveiling of Rose Hill, one of the new residential developments in Manhattan's NoMad neighborhood that represents a modern era of Gotham-esque architecture and design by award-winning New York-based design firm CetraRuddy, legendary dev
The ethereal master bath at @theXInyc West Tower Penthouse features a custom sandblasted verde caldia floor, a carved verde scuro tub, and bronze vanities with marble tops designed by #AD100 French interior architect @pierre.yovanovitch.

Situated in