@Sabrina MaplesIn most cities MF is considered a less offensive and higher and better use than commercial / hotel, so while it will take an architect, surveyors, and the rezoning process it could be possible.

No offense intended here, but central PA just does not seem to have expansion that you see elsewhere.

Considering the fact that they are otherwise great tenants, I would not evict, but I would word the letter in such a way that they are aware that this is their one and only allowable offense.

Real estate development is not for the faint of heart, so after reading your post, it begs the following questions (and I hope you don't take offense): given you're new to development, why would YOU want to take this on, and why would your friend want you to lead such a project?

It helps if you box, lift weights and practice Krav Maga or other offensive/defensive combat skills.You also need 3M talent. 

No offense, but that does not exactly inspire confidence to invest in your company.

Here is what I found: According to state laws (Civil Code § 1941.1 and § 1941.3), at minimum every rental must have:-effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors-functioning plumbing, heating, and electrical facilities, including hot and cold running water and a working toilet and kitchen sink-clean and sanitary building and grounds (that is, free of debris, filth, rubbish, garbage, rodents, and vermin), with adequate trash receptacles-well-maintained floors, stairways, and railings-deadbolt locks on certain doors and windows-no lead paint hazards, and-no nuisances, a catchall provision referring to something that is dangerous to human life, detrimental to health, or morally offensive and obnoxious, such as allowing drug dealing on the premises.If I were you I would take LOTS of pictures and document everything.

A lease is the same thing - it's there to protect me from serious offenses.

No offense intended. 

irisI say it all the time find a local paralegal and do your home workthis will save you the bar fees and you will be educated about the law in your staterealtors are mostly cream puff seller-(no offense) especially when it comes to something out side the boilerplate contractI bought my first piece of property on a napkin at the black bear dinnermake sure you get in with the title company and make it a habit of being a friend with the county court houseenjoy