This guide outlines the standard process for acquiring commercial properties such as retail spaces, office buildings, entire buildings, warehouses, and mixed-use assets, particularly in New York and New Jersey.
✅ 1. Define Your Investment Goals
Setting clear investment goals is the first step when buying commercial real estate in NYC or NJ, whether you’re targeting retail, office, industrial, or mixed-use properties.
Property Type: Retail / Office / Industrial / Mixed-use
Intended Use: Owner-occupied, investment, or redevelopment
Key Criteria: Size, location, budget
Return Objectives: Cash flow vs. long-term appreciation
📌 Commercial transactions are more complex than residential. It’s essential to align your strategy with tax implications, financing, and lease structures from the outset.
✅ 2. Financial Readiness (Cash or Financing)
Preparing your financing strategy early is essential when securing a commercial property loan in New York or New Jersey—especially with typical down payments of 30% or more.
📌 Commercial loans focus heavily on the property’s cash flow, lease terms, and buyer’s financial background.
✅ 3. Property Search & Evaluation
A smart commercial real estate search involves evaluating NOI, cap rate, lease terms, and redevelopment potential—key factors when investing in NYC office buildings, warehouses, or retail spaces.
🎯 How Victoria Adds Value:
Victoria helps identify properties with strong upside and stable income, and assists with return modeling and feasibility analysis.
✅ 4. Submit Letter of Intent (LOI)
Submitting a well-structured LOI is a crucial step in the NYC commercial property acquisition process and sets the tone for contract negotiation.
Make an initial offer with key terms: Purchase price, payment structure, due diligence period, and closing timeline
Include buyer protections such as financing contingency or clean title requirement
If accepted, proceed to formal contract negotiations
✅ 5. Contract Signing & Due Diligence
Commercial real estate due diligence in NYC or NJ involves legal, financial, and environmental review—including title search, rent roll audits, and Phase I assessments.
Buyer’s attorney drafts or reviews the purchase contract
Submit 5–10% deposit, typically held in escrow
Begin comprehensive due diligence:
Title search
Financial audit (rent roll, tax bills, expenses)
Phase I Environmental Assessment
Structural inspection, lease audit, and estoppel certificates
⚠️ Due diligence is critical — red flags discovered during this phase can materially affect the transaction.
✅ 6. Loan Processing (If Financing)
For financed commercial purchases, lenders in NYC and NJ assess both the property’s income and the borrower’s financials before issuing a commitment letter.
Submit a loan application
Bank orders property appraisal
Receive commitment letter from lender
Preparing for a commercial real estate closing requires confirming a clean title, finalizing documents, and wiring funds to meet New York or New Jersey legal standards.
📌 Typical commercial closing costs include legal fees, title insurance, appraisal, environmental review, and lender fees.
✅ 8. Closing & Property Handover
At closing, the buyer finalizes the commercial real estate transaction and takes possession of the property, including leases and management contracts.
Finalize all documents and funding
Title is transferred to the buyer
Receive keys and all supporting documents
Take possession, including transfer of leases and management contracts
💰 Typical Closing Costs for Commercial Purchases
Typical closing costs for buying commercial property in NYC or NJ include title insurance, legal fees, lender charges, appraisal, and environmental reports etc.
