Purchasing commercial property is not only expensive; it also requires a great deal of consideration and research before a purchasing decision can be made. Investors, insurance lenders, portfolio lenders, and commercial mortgage-backed security (CMBS) lenders routinely order property condition assessments (PCAs) to learn more about a property before entering a purchase agreement.
It’s important to have a checklist before you obtain a commercial building inspection to understand better what to look out for. Everything from the interior of the building to the ventilation and air conditioning system will be checked during a commercial building inspection. By having a thorough checklist, you can ensure that the entire building is assessed. Since this inspection will likely determine if you purchase the building, you want to be confident that you’re making a wise investment. By not identifying an issue on time can lead to extensive damages and costly repairs.
If these damages occur after you have purchased the property and your business is up and running, you may need to close down temporarily while repairs are being made, which can waste time and money that would have been better spent elsewhere. Before you go forward with a commercial building inspection, it’s highly recommended that you know what these inspections entail.
Who Performs A Commercial Building Inspection?
Asset managers have several options when hiring a commercial building inspector. The first option is to hire an engineer or architect. These individuals possess varied backgrounds in the building trades, facilities management, maintenance, and similar subjects. However, it is important to note that engineers and architects may charge premium fees for their services and specialized knowledge.
A second option is to hire a commercial building inspector. Many companies specialize in both residential and commercial inspections but be careful. The nature of a commercial inspection is unlike a residential inspection. Hiring a company that specializes in commercial inspections and understands that commercial properties are company assets, business expenses, and income generators is a good idea.
Why You Should Prepare a List of Questions Before Your Inspection
Preparing a list of questions beforehand is a good idea if you’re buying or leasing a commercial building. Building inspectors conduct thorough examinations of the building and exterior property, but if you have specific questions, having a list will ensure you receive the answers you need. This will also ensure you are not surprised by future damages or fines.
Ideas for questions may include:
- What is the condition of the roof?
- Are there any safety hazards?
- Which systems should be repaired first?
- Are there any current warranties on the property?
What Does A Building Inspection Include?
The foundation of a commercial property inspection is the walk-through survey. Here, the inspector conducts a thorough visual inspection of the property and examines the critical internal components of the building, including HVAC systems, plumbing, and the electrical system.
Restaurants and hotels will have additional considerations, from kitchens to laundry facilities to fitness centers. Basements or crawlspaces and the building’s foundation will also be examined. In addition to the interior inspection, the exterior will be examined. This will include the roofing, doors, windows, and all outdoor drainage apparatus; the parking lot; any outdoor amenities such as patios, decks, or outdoor seating areas; and any other external components. The inspector may not work alone; they’ll typically bring in specialists (plumbers, electricians, and so on) who can provide additional insight and expertise.
Commercial Property Documentation
In addition to the building inspection, a commercial property inspector will review all relevant documents for the property. This might include any records about repairs and renovations, building code violations, and prior lease agreements or records of previous ownership. It’s important for those looking to purchase a property – as well as those who may be lending them the money to do so – that all of the property’s written documentation is intact and complete. This documentation can support the inspector’s notes on the property’s condition, especially concerning potential structural and systematic faults and disrepair.
Schedule Your Commercial Property Inspection in Colorado Springs
A commercial property inspection is an absolute must for both buyers and sellers. We will get back to you right away. Our team is eager to help you through your inspection in Colorado Springs and beyond. Contact us today to schedule your Commercial Property Inspection and let PineBreeze put you at ease.