What to Look Out for in a Commercial Building Inspection
A commercial building inspection is important because as a real estate investor, you have to know the value of a property before getting into a purchasing agreement with the seller. It is best conducted by a qualified inspector or property manager who understands how expensive a commercial investment is and how important it is in the decision-making process. Commercial properties are such as apartment complexes, office buildings, warehouses, factories, manufacturing facilities, and the like.
These are some of the most common things to look out for when conducting an inspection:
- Reviewing of documentation presented by the seller is very important. Your property inspector should be able to give a report on the utility bills, costs of repairs needed, cost of the building, and any other expense that will help in determining the value of the property. Some of the most important documents to be reviewed include the building’s emergency exits and safety fire alarm systems, certificates of occupancy, surveys and citations, architectural drawings and construction permits, certificates of occupancy, floor plans and zoning, rent records and inspection reports among many others. These documents by all means help in determining the value of a commercial property and makes decision making for an investor much more easier.
- Once all documents are clear, the building systems need thorough inspection. These include structures such as air conditioning and ventilating systems, electrical and plumbing systems, security alarms, sprinkler systems, and every other system in the building that should be working. If a system is not working, the inspector can add repair costs on the inspection report to allow for calculating value costs during transactions.
- Both the exterior and interior of a home play a great role during inspections. They determine whether the building is safe for occupation and if it meets the building codes of the area. The commercial building should be structurally sound and all interiors should be up-to-date. Similarly, all repair costs for areas which need touch-ups should be included in the inspection report to determine whether the commercial property is in good condition to be bought or requires some work before such negotiations are made.