Contact

Certificate of Occupancy (CO)

En español: Certificado de ocupación (CO)

Definition

A certificate of occupancy is the building department's written statement that a completed building meets code and may be legally occupied. It is issued after final inspections pass, and until it exists the building cannot lawfully be lived in, leased, or in most cases financed as a finished asset.

How to read it
How to read it
  • It is the finish line for the construction loan and the starting line for the lease-up. Every month it slips is a month of debt service without rent.
  • It is issued per building, and its conditions are specific. Read what use it certifies, because occupancy is granted for a use, not in general.
  • An older building's CO says what it was legally built as, which is not always what is standing there now.
  • No CO, no lease. A tenant in a building without one is a code case waiting to be opened.

Terms arrive with the writing.

The glossary grows as the Journal does, one email when something worth reading goes up. No noise.

Unsubscribe anytime. See our Privacy Policy.