Commercial Property Inspections: What You Need to Know
When you bought your home, you almost certainly had a home inspection performed. These inspections, mandatory for most mortgages, inform buyers of a home’s condition and any urgent issues or repairs needed. They bring peace of mind to both buyer and lender.
When buying a commercial property, it’s possible your lender may also require an inspection. But even if it isn’t required, a comprehensive inspection is the right thing to do. Lessees, especially those taking on a triple net lease, can also benefit from a property inspection.
Who Performs the Inspection?
The majority of commercial property inspections are performed by a certified inspector. A good inspector should have dedicated experience with commercial buildings. This specialty is important, as commercial properties are not only more complex than many residential properties but act as company assets and revenue generators. They should also be certified by the CCPIA.
For older or larger properties, you may also want to hire an engineer or architect. This is understandably more expensive, but these highly experienced professionals have training that goes far beyond an inspector. That additional expense can save you a lot of money down the road.
What Do They Look For?
Inspectors of commercial properties look for much of the same things residential inspectors do. They identify flaws in structural integrity, malfunctioning systems, hazards, and areas not obviously up to code. The primary concerns are aesthetics – chipping paint, holes in walls – and safety, such as loose railings or crumbling staircases.
Their findings are presented to you in a comprehensive report that features photos of everything the inspector finds, along with repair recommendations. This can sometimes be used as leverage for negotiation in the buying process.
Similar to a home inspector, they typically do not inspect foundations or areas that are particularly hazardous, such as rooftops, sewer systems, and underground areas. Also similar to a home inspector, you may want to hire specialists to check for erosion damage, wood-destroying insects, and other specific issues. For more information, the CCPIA has a full list of standards on their website.
Looking to invest in commercial property? It’s a complex world, and a broker can help! Insight Property Group’s experienced professionals can help you navigate the maze of inspections, transactions, and paperwork necessary to complete your lease or purchase! Contact us today to get started.