Certificate of Occupancy: What It Is and How to Get One

You can't open without it

Quick answer: A Certificate of Occupancy (CO) is an official document from your local building department that says your property is safe to occupy and approved for its intended use. You need one if you're doing new construction, changing the use of a space, or doing major renovations. Without it, you can't legally open.

I've seen business owners spend months on buildout, get every other permit squared away, and then discover the CO from the previous tenant doesn't match their business type. That single document held up their opening for another 6 weeks.

Landlords sometimes forget to mention this. City inspectors do not.

When do you need a Certificate of Occupancy?

You need a CO (or need to verify you have one) in these situations:

New construction: Any newly built commercial space needs a CO before anyone can occupy it.
Change of use: If the previous tenant used the space as an office and you're opening a restaurant, the CO needs to be updated to reflect the new use. Different uses have different building code requirements.
Major renovations: If you did major construction (new walls, plumbing, electrical, HVAC), the building department will require updated inspections and a new or amended CO.
Change of occupancy classification: Moving from a "B" occupancy (business) to an "A" occupancy (assembly, like a bar or event space) triggers different fire, egress, and ADA requirements. You need a new CO.

How to get a Certificate of Occupancy

Step 1: Check the existing CO

Before you sign a lease, ask the landlord for the current Certificate of Occupancy. Verify that the listed use matches (or is compatible with) your intended business. If the space has a CO for retail and you want to open a retail store, you may be fine. If it has a CO for office and you want to open a restaurant, you have work ahead of you.

You can also check with your city building department, most maintain records of issued COs.

Step 2: Submit for building permits (if needed)

If you're doing any construction, renovation, or change of use, you need building permits first. Submit your architectural plans to the building department for review. Plan review takes 2 to 8 weeks depending on your city and the complexity of the project.

Step 3: Complete construction and pass inspections

During and after construction, the building department sends inspectors to verify the work matches the approved plans. Common inspections include:

Framing inspection
Electrical rough-in and final
Plumbing rough-in and final
Mechanical (HVAC) inspection
Fire safety inspection (sprinklers, alarms, exits)
Final inspection

Each inspection must pass before you move to the next stage. A failed inspection means corrections and re-inspection, which costs time and money.

Step 4: Apply for the CO

After passing your final inspection, apply for the Certificate of Occupancy. In most cities, this is a form you submit to the building department. They review the inspection records and issue the CO, typically within 1 to 2 weeks after the final inspection passes.

What does a CO cost?

The CO itself is usually inexpensive: $50 to $500 in most cities). The real cost is in the building permits and inspections required to get it:

Building permit fees: Typically 1% to 2% of the construction cost. A $50,000 buildout means $500 to $1,000 in permit fees.
Plan review fees: Often included in the permit fee, but sometimes charged separately. $200 to $1,000.
Inspection fees: Sometimes included in the permit fee, sometimes billed per inspection. $100 to $300 per inspection visit.

What's the difference between a CO and a TCO?

A Temporary Certificate of Occupancy (TCO) is issued when the building is substantially complete and safe for occupancy, but minor items remain unfinished (final landscaping, minor punch list items). A TCO lets you open and operate while those items are completed. It has an expiration date, typically 90 days, by which the remaining work must be done and a final CO issued.

TCOs are common for new construction and major renovations. They're a practical solution, but don't treat them as permanent. If the TCO expires and you haven't obtained the full CO, you can be ordered to vacate.

Common CO problems

The previous tenant's use doesn't match yours. The landlord says "it was a restaurant before." But the CO says "retail." That means the restaurant was operating without a proper CO, and you'll be too unless you get it updated.
Unpermitted work. If the previous tenant did construction without permits, the building department may require you to bring the space up to code before issuing a CO. This can be extremely expensive if walls need to be opened for inspection.
ADA compliance. Changes in use or occupancy often trigger ADA accessibility requirements, ramps, accessible restrooms, door widths. Budget for these if your space wasn't previously ADA-compliant.

Check before you sign the lease

The CO isn't optional. It's a prerequisite for every other permit you'll apply for — your health department, fire marshal, and liquor licensing board all want to see a valid CO before they will issue their permits.

For the full picture on what permits you need alongside the CO, see our restaurant permit checklist or retail store permit guide.

Use the free permit checker to see every permit your business needs, including whether you'll need a new CO based on your business type and location.