Purchasing a commercial building is a costly investment. That is why buyers should take the necessary precautions to avoid irrecoverable losses. Before paying for the establishment, a portfolio manager might require a detailed commercial building inspection and report. That will provide vital information necessary to make an informed investment decision.
A commercial building inspection will reveal the actual condition of the property and the exact costs for repairing it. Before delving deeply into matters on commercial building inspection, let’s define terms and learn about its basics.
A Commercial Building
This is a structure constructed on a parcel of land meant for commercial real estate. The purpose of these buildings is to generate profit either from income or capital gain. They are grouped into five classifications:
- Office Edifices
- Retail Structures
- Residential Houses
- Land and miscellaneous.
Who carries out the Inspection?
Proper owners or managers have two options if they need a building inspector. They can choose to hire an architect or an engineer. These specialists have a background in construction, facility management, and maintenance. However, keep in mind these experts might charge expensive fees for their specialized knowledge and service.
Property owners or buyers can also hire a commercial building inspector as their second option. Many firms offer both commercial and residential inspections. However, you must be cautious because commercial inspection differs from residential inspection. To obtain quality services, you need a specialist in commercial inspections. The specialists understand commercial buildings are an investment, an asset, and an expense for the business.
The Objective of the Inspection
Acquisition of commercial real estate centers on the residual value and return on investment (ROI). Portfolio managers will want to know; how much the building will cost and the amount of profit it can generate. The inspection will reveal the state and lifespan of five major systems:
- Structural Stability
- Electrical System
- Drainage system
A detailed inspection report will reveal when the systems listed above will require replacements or repairs and at what cost. The information will give the buyer an advantage to negotiate for a better deal.
4 Things an Exterior Commercial Inspector will look for
While inspecting the building, the inspectors will focus on the following things:
Structural Frame and Walls
The stability of any building depends on its structural frame. To determine the longevity of any building, the inspectors will check the state of its foundation and pillars. Properties with a weak foundation will collapse within a short time. The local authorities will want the building demolished as it endangers people’s lives. The specialist will also check the interior and exterior walls. Cracks on the walls are proof of weakness. That will make the building a bad investment.
The roof plays a significant role in any building. It protects the property from bad weather conditions while enhancing its security. To determine its strength and durability, the inspector will assess the roof truss. Remember repairing or restoring the roof is expensive. That explains why inspectors must check it properly.
Parking and Pavements
The cost of the entire building will include every amenity located within its parcel of land. That is why the inspectors will check the exterior parking and pavers. If they are in poor condition, you will pay for their repairs after acquiring the property. These facilities affect the building’s valuation. Hence, they can lower the cost of the property if they are in a bad state.
When inspecting the plumbing systems, the experts will check their general functionality and if they have leaks. The water and waste lines supply will be inspected visually where they are accessible. The inspectors will examine the water heaters to determine their life expectancy too. They will also visually review the fire suppression systems and the main water supply and search for the recent municipal inspection tags.
Many property agents are never honest with buyers. Their focus is selling buildings on listings for a commission. That is why they can sell a property in the worst condition without remorse. Most buyers have fallen victim to their schemes. Fortunately, you can avoid such disappointments by obtaining the assistance of a trusted commercial building inspector. The expert will check every part of the property and draft a report. Via the notice, you will know the state of the building, the proposed repair costs, and advice on whether to buy or not.