What should a small business check before leasing retail space in San José?

Start with the use, not the storefront

A space can look perfect and still be a poor fit for the operation you intend to run. San José's own small-business guidance recommends checking the allowable uses for a property before leasing or buying it. That check should happen before the lease becomes unconditional.¹

The relevant question is more specific than whether a property is 'commercial.' Zoning districts distinguish among uses, and a particular operation may be permitted, conditional, or require another planning process. Parking, prior approvals, and the exact way the business operates can matter as well.^{2, 3}

Review the property's public record

Use the City's SJPermits public search to inspect available permit history, applications, inspection records, plans, and certificates of occupancy. The record can help your team identify questions for the owner, broker, contractor, planner, or attorney before you rely on assumptions about the space.⁴

• Does the recorded occupancy align with the proposed operation?
• Were prior improvements permitted and finalized?
• Are there open applications or unresolved inspection issues to investigate?
• Will the proposed signage, equipment, or layout trigger additional review?

Map the improvement and occupancy path

A tenant improvement, interior build-out, or change in use can require plan review, permits, inspections, and potentially a new certificate of occupancy. San José provides a commercial tenant-improvement process and states that a certificate of occupancy is required for many nonresidential properties before occupancy or a change in occupancy character.^{5, 6}

Before signing, get practical answers about scope, responsibility, cost, and schedule. A lease should be reviewed by appropriate legal and technical professionals, particularly where the business depends on a use approval or a substantial build-out.

Put the business terms around the property risk

A commercial real-estate advisor can help coordinate these property and deal questions. Attorneys, planners, architects, contractors, and other specialists can assess the details in their respective fields.

• Who pays for design, permits, utility upgrades, accessibility work, and construction?
• When does rent begin, and what must happen first?
• What happens if the intended use or required improvements are not approved?
• Are the delivery condition and landlord work described clearly enough to verify?
• Does the schedule include realistic time for professional review and City processes?

Account for registrations outside the lease

The premises are only one part of opening. The City says a person or company doing business in San José must register for a Business Tax Certificate within 90 days of starting business. Depending on the operation, state or county registrations and specialized permits may also apply.⁷