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) in order to learn more about a property or before entering into a purchase agreement.
It’s important to have a checklist before you obtain a commercial building inspection so that you can better understand 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 in hand, you can make sure that the entire building is assessed. Since this inspection will likely determine if you go forward with purchasing 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 it comes to 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. It’s a good idea to hire a company that not only specializes in commercial inspections but also understands that commercial properties are a company asset, business expense, and income generator.
Why You Should Prepare a List of Questions Before Your Inspection
If you’re buying or leasing a commercial building, it’s a good idea to prepare a list of questions ahead of time. 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 with damages or fines in the future.
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 will conduct a thorough visual inspection of the property. The critical internal components of the building will be examined; this will include 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 pertaining to repairs and renovations, any records of building code violations, and any 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 as those relate to potential structural and systematic faults and disrepair.
Schedule Your Total Home Inspection in Colorado Springs
A commercial property inspection is an absolute must for both property buyers and property sellers. Please contact us today to book your inspection and learn about the home you are looking to purchase. 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 for your Commercial Property Inspection.