Commercial Real Estate Services

Commercial Property Sales

I assist clients who want to operate their own businesses or hold commercial real estate as a long-term investment.

Property types may include:

• Retail and commercial buildings
• Office and medical office buildings
• Warehouses and industrial properties
• Restaurant and food-service properties
• Mixed-use buildings
• Land and development sites
• Commercial properties sold together with an existing business

Commercial Leasing

I help clients find commercial spaces based on the nature of their businesses, customer accessibility, parking needs, and lease requirements.

Commercial spaces may include:

• Restaurants and cafés
• Retail stores and service businesses
• Professional offices
• Medical and healthcare offices
• Hair salons and nail salons
• Warehouses and workspaces
• Schools, academies, and educational facilities

When evaluating a commercial lease, you should review more than the monthly base rent. Important considerations include Common Area Maintenance charges, commonly called CAM charges, property taxes, insurance, utilities, repair responsibilities, and scheduled rent increases.

Investment Properties

I assist clients in analyzing investment properties based not only on current rental income but also on future operating expenses, maintenance requirements, and resale potential.

Investment properties may include:

• Multifamily properties
• Mixed-use buildings
• Retail properties
• Office buildings
• Warehouses and industrial properties
• Income-producing land and buildings
• Properties with development or redevelopment potential

Business Sales

I also assist with the purchase and sale of restaurants, delicatessens, laundromats, nail salons, hair salons, and other service businesses.

Reviewing gross sales alone is not enough when purchasing a business. Buyers should also examine tax returns, profit-and-loss statements, bank deposit records, lease agreements, employee expenses, equipment condition, and applicable licenses.

Important areas of review include:

• Gross sales and operating profit
• Lease terms and remaining lease period
• Renewal options and rent increase provisions
• Equipment and inventory
• Business licenses and permits
• Seller-provided business records
• Combined sale of the business and real estate

When purchasing an existing business or business assets in New Jersey, the state’s Bulk Sale procedure may also apply. In general, the buyer or the buyer’s attorney must submit the required documents to the state tax authorities at least 10 business days before the sale.

The specific procedure should be reviewed with an attorney and accountant. Additional information is available from the New Jersey Division of Taxation.

Investment Property Analysis

Evaluate Actual Income, Not Just the Purchase Price

A low purchase price does not necessarily make an income-producing property a good investment.

You should analyze the property’s current rental income, potential vacancies, repair expenses, property taxes, insurance costs, and future resale potential.

A Cap Rate should not be the only factor used to evaluate an investment. The property’s physical condition, tenant stability, financing terms, and anticipated repair expenses should also be considered.

What to Review When Selecting Commercial Real Estate

1. Location and Commercial Area

Consider the following:

• Vehicle and pedestrian traffic
• Customer accessibility and property visibility
• Assigned and shared parking
• Nearby businesses and competitors
• Access to major roads and public transportation
• Delivery routes and access for receiving merchandise

2. Zoning and Permitted Uses

The fact that a particular business is currently operating at a location does not automatically mean that a new owner or tenant can continue operating the same type of business.

Before signing a contract or lease, confirm with the municipality that your intended business use is permitted at the property.

Commercial zoning and permit requirements vary by municipality in New Jersey. The U.S. Small Business Administration also recommends confirming that a property complies with local zoning requirements before purchasing or leasing a business location.

Additional guidance is available from the U.S. Small Business Administration.

3. Physical Condition of the Property

Important areas to inspect include:

• Roof and exterior walls
• Electrical capacity and wiring
• Plumbing and sewer systems
• Heating and cooling systems
• Fire protection and sprinkler systems
• Elevators and accessibility
• Basement water intrusion and drainage
• Oil tanks and other environmental concerns

4. Environmental and Flood Risks

Gas stations, dry cleaners, automotive repair shops, factories, and older commercial buildings may have soil contamination or underground storage tank issues.

When appropriate, buyers should consult an environmental professional and consider obtaining a Phase I Environmental Site Assessment.

Properties near rivers or coastal areas should also be evaluated for flood-zone designation, flood insurance costs, and previous flooding.

Environmental requirements may vary depending on the property’s location and previous use. Additional information is available from the New Jersey Department of Environmental Protection.

5. Commercial Lease Terms

Carefully review the following:

• Initial lease term and renewal options
• Annual rent increases
• CAM and additional maintenance charges
• Responsibility for property taxes and insurance
• Repair and replacement responsibilities
• Signage rights
• Exclusive-use provisions
• Assignment and sublease rights
• Personal guarantee requirements

Commercial Real Estate Process

Step 1: Discuss Your Objectives and Budget

First, we determine whether the property will be used for your own business or purchased as an income-producing investment.

Step 2: Select the Location and Property

I help identify locations and properties based on the type of business, target customers, parking needs, transportation access, and available budget.

Step 3: Analyze Income and Expenses

We review rental income, property taxes, insurance, maintenance expenses, repair costs, and projected cash flow.

Step 4: Inspect the Property and Negotiate the Terms

We evaluate the property’s physical condition and suitability for the intended business use, then negotiate the purchase price or rent, inspection provisions, and other important terms.

Step 5: Conduct Due Diligence

During the due diligence period, the buyer works with attorneys, accountants, lenders, inspectors, and environmental professionals to review the necessary records and identify potential risks.

The State of New Jersey’s small-business guidance also identifies budgeting, assembling a professional team, conducting due diligence, negotiating the contract, obtaining financing, and reviewing title as important parts of acquiring commercial property.

Additional information is available in the New Jersey Small Business Manual.

Step 6: Contract and Closing

The transaction proceeds through attorney review, financing, appraisal, inspection, title review, and other required steps before closing.

Why Work With Richard Choi?

Extensive New Jersey Experience and Local Knowledge

I have lived in New Jersey for more than 30 years and have experience with residential real estate, commercial properties, investment properties, and business sales.

Every commercial real estate client has different goals. A business owner searching for an operating location must evaluate a property differently from an investor seeking rental income.

My role goes beyond simply introducing available properties. I consider your business plan, budget, preferred location, projected operating expenses, and long-term investment objectives to help you make an informed decision.

My services include:

• Extensive knowledge of New Jersey communities and commercial areas
• Consultation in Korean and English
• Commercial property sales and leasing
• Investment property analysis
• Business purchase and sale assistance
• Coordination with attorneys, accountants, lenders, inspectors, and other professionals