| We are looking for a small office building to buy | | | | of which will need to be approved by the local |
| for our professional practice. Our broker is | | | | jurisdiction. But this is relatively minor compared to |
| suggesting that we buy an industrial building and | | | | the time and expense of a change of zoning, or |
| convert it to an office building. Is this practical? | | | | obtaining a special use permit. |
| As property values have risen on Long Island, | | | | The surrounding properties are also a |
| particularly in Nassau County, the highest and best | | | | consideration. I would have little concern about an |
| use of properties has often changed. So a | | | | office conversion if the property were located in |
| well-placed industrial building may indeed be a | | | | well-maintained industrial and research park. But |
| candidate for conversion. And it may also be a | | | | the resale value of your office conversion may |
| pitfall for the unwary! So let's take a look at | | | | be a problem if it is located next to heavy |
| some of the factors involved in a conversion and | | | | industrial manufacturing or a scrap yard! |
| how practical it may be. | | | | Know your construction costs before committing |
| One the first concerns I have is parking. Many | | | | to the project! These costs are highly dependent |
| older industrial buildings were legally built with a | | | | on the actual structure you are considering, so |
| parking ratio of "two to one." This means that | | | | avoid averages or "ball-park" conversion |
| there were two parking spaces allocated for | | | | estimates. You cannot afford to negotiate on the |
| every 1,000 square feet of building area. This | | | | existing building without knowing your total cost, |
| would be woefully inadequate for any sort of | | | | which includes acquisition, conversion, and soft |
| office use, and would not meet any modern | | | | costs. |
| building code for office use. An office building is | | | | Two other quick caveats: The industrial building will |
| often required to have a parking ratio of five to | | | | have taxes that seem low by office standards - |
| one, and sometimes more. So in most | | | | that will change when the building is assessed! And |
| jurisdictions, a 10,000 square foot office building | | | | don't forget to factor in the time and effort that |
| would need at least 50 parking spaces. So the | | | | it will take to supervise, or live through the |
| office conversion candidate probably needs an | | | | conversion process. A typical industrial conversion |
| oversize plot, or an adjoining plot that may be | | | | would probably take no less than six months, and |
| acquired. Or, the economics may actually justify | | | | could certainly take up to year including filing and |
| demolishing part of the existing structure to | | | | approvals. |
| create additional parking. | | | | Properly done, an industrial conversion can be |
| Zoning in many areas actually allows office | | | | outstanding buy, and I can point to many |
| buildings to be built in an industrial zone, "as of | | | | examples on Long Island. But the process requires |
| right", meaning that a zoning variance will not be | | | | exhaustive research, which is best done by an |
| required for a conversion. But this is not | | | | architect whom you have hired long before you |
| necessarily so. The actual conversion will require | | | | go to contract! |
| building plans, and probably a new site plan, both | | | | |