Commercial real estate acquisitions revolve around return on investment (ROI) and residual value. Portfolio managers want to know two things: “How much will this cost?” and “How much will I make on this investment?” 

This is where an inspection comes in handy. An inspection will reveal the life spans of five major systems within the building, including the following:

• Roofing
• Structural Integrity
• Electrical
• Plumbing
• Heating, Ventilation and Cooling (HVAC)

Real estate management teams want to know if the roof or HVAC system will need to be replaced in the coming years, or if electrical elements will need to be upgraded due to a change in building use. A building audit or inspection will provide insight on these questions. The resulting report will ultimately advise the portfolio company whether or not buying the property is worth the investment.

A commercial building is a building or structure located on a parcel of commercial real estate. These buildings are intended to generate profit, either from capital gain or rental income. Commercial buildings are usually divided between five categories: Office Buildings, Retail/Restaurant, Multifamily Dwellings, Land and Miscellaneous. If you are purchasing a commercial building then the answer is, YES, you need a commercial building inspection to protect you and your investment.

Some examples of commercial buildings and properties include:

• Cafes
• Condominiums
• Convenience Stores
• Factories
• Hotels and Lodging
• Malls
• Manufacturing Facilities
• Medical Office Suites
• Mixed-use Buildings
• Multifamily Housing
• Office Buildings
• Residential Units (for-profit) 
• Restaurants 
• Shopping Centers
• Sports Facilities
• Storage Facilities
• Strip Malls
• Warehouses

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.

Commercial buildings generally have five major systems: Electrical, Mechanical, Heating, Plumbing and Air Conditioning/Ventilation. Inspectors will check that these systems are in good working condition. If a system is not up to par, the inspector will include a write up and photos in your commercial inspection report. Other inspection items include things like water damage, safety hazards, faulty components, and much more.

Yes! 

On the interior, the inspector will inspect the building’s walls, floors, bathrooms, offices, kitchen spaces, and similar areas. This portion of the inspection will illuminate any need for interior repairs.

A building’s exterior is also a very important component of the inspection. The inspector will determine whether the building is structurally sound and highlight any necessary repairs. Inspectors may rely on insight from roofing experts, electricians, plumbers, or construction contractors to fully inspect the exterior health of a building.

A commercial building inspection can take as little as a few hours or as long as a full day to complete. This greatly depends on the size, condition, and use of the property. Our commercial department always delivers commercial inspection reports the same day as the inspection. 

See full Phase 1 page HERE

Under the general standard ASTM E1527-21 a Phase 1 Environmental Site Assessment (ESA) is typically performed for a real estate holding that identifies potential or existing environmental contamination liabilities. The analysis, often called an ESA, typically addresses both the underlying land as well as physical improvements to the property. The Phase 1 ESA is generally considered the first step in the process of environmental due diligence. In general, the assessment is performed to uncover any environmental risks before purchasing a property. Phase 1’s are also performed to identify if any contaminations have occurred since a last Phase 1 or if a property owner/manager rents the property to an entity that may have caused an environmental concern.