Site Surveys

Existing buildings have secrets you need to uncover!

Don’t be too eager to sign a lease on your “perfect” location. While this is not intended to provide any legal advice (doesn’t everyone say that), experience dictates that there are many red flags that need to be considered when evaluating a potential restaurant space.

Existing buildings, even those that were previously constructed to be a restaurant, need to be vetted by professionals – architect, MEP engineer, structural engineer, courtesy Health Department walk-through – to understand base building issues as well as those that must be addressed to comply with current codes.

With buildings or spaces that you are converting to a restaurant space, many issues – zoning, parking, liquor license availability, noise ordinances, signage restrictions – must be addressed.  Change of use or extensive remodeling may trigger building code upgrades, expanded bathrooms and ADA compliance.

Specific areas that frequently need upgrading are clogged waste lines, grease traps, undersized or non-complying utilities – electrical, gas, water line size, existing exhaust hoods, fire rated enclosures for ductwork, between floors, on combustible surfaces or around certain spaces. Structural issues may arise with heavy equipment such as ovens or large appliances. Activities related to restaurant occupancy – dancing or large crowds (concerts) may require a structural review to confirm that the building can accommodate these activities. This is not uncommon!

Rooftop equipment such as air handling units, fans and compressors should all be inspected to determine life expectancy, condition, performance and code compliance. Available space on the roof for added equipment such as remote compressors or added air handling equipment should be confirmed. Here, too, structural support for this equipment should be checked.

The roof should be inspected for overall structural and waterproof integrity.

If there is occupied space below or above your potential space, how do you access and work in this space during construction to install utilities (floor drains and floor sinks, utility conduits, ductwork)? Your working hours may be restricted. Additionally, with other tenants above or below, noise abatement and waterproofing of the floors may be a requirement.

And then there is the issue of who pays for what. Repairing roofs, replacing or repairing mechanical systems, upgrading utilities are all expensive. Your lease negotiator should address these potential costs with your landlord and clearly establish what falls under the landlord’s work and expense.

There is often an eagerness to tie down a space before it gets away, but due diligence in the early planning stages, including thorough lease negotiations with proper counsel, will save you time and a lot of money.