A commercial property inspection is defined as:
the process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, and then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector. A commercial inspection requires the inspector to make observations, conduct research, and report findings.
The commercial inspector will comply with the International Standards of Practice for Inspecting Commercial Properties (ComSOP) – the industry-accepted commercial inspection guidelines, and a proven process and system. As a baseline, the assessment includes the following services:
1. Walk-through survey.
This is the portion of the service where the inspector conducts a thorough on-site visual examination of the property’s physical condition. The assessment is focused on the building’s critical systems and components, including the following:
- heating and ventilation systems;
- cooling systems;
- plumbing systems;
- mechanical and electrical systems;
- roof surface, drainage, and penetrations;
- exterior elements and fixtures;
- general topography of the building site;
- parking areas and sidewalks (for barriers to accessibility);
- wood decks and balconies;
- basement, foundation, and crawlspace;
- doors, windows, and interior;
- life safety components;
- kitchen (including storage);
- and other areas that are specific to the subject property.
Depending on the scope of the project, the commercial inspector may use a team of specialty consultants who provide expertise in relevant areas during the walk-through survey. Specialty consultants may include:
- a plumber;
- an electrician;
- an HVAC contractor;
- a Professional Engineer;
- a commercial kitchen expert; and/or
- an Infrared-Certified® thermal imaging inspector.
2. Document procurement and review.
For this portion of the service, the commercial inspector requests and reviews documents and records about the property. Some relevant documents may include lease agreements, Certificates of Occupancy, building and fire code violations, service contracts, repair invoices, and maintenance records. The commercial inspector will also interview person(s) with the most knowledge about the condition of the building. Many potential deficiencies can be identified in a building this way, as well as in reviewing its history. This service will:
- enhance the information obtained during the walk-through survey; and
- provide supporting documentation for the inspection report.
3. Inspection report.
The final product of a commercial property inspection is the written report. It will contain concise details from the walk-through survey, documents procured, the results of interviews conducted, and any other third-party reports ordered as part of the commercial property inspection.
The inspection report will basically include a detailed summary of the inspector’s findings. This will provide the client with an inventory of the building’s major systems and components, and an evaluation of their functional and physical condition. These findings will highlight the property’s strengths and potential deficiencies, along with deferred maintenance issues. The inspection report can be used to understand and address the issues that will impact the building from a physical standpoint and financial perspective, as well as the health and safety of the building’s occupants.
Every inspection and subsequent report will be different based on the type of property and its use, the Scope of Work for the inspection, and even the inspector, so previous inspection reports should not be relied upon as an accurate record of its current condition.
NOTE: If the client prefers a less formal way of gaining an understanding of the condition of a property, the commercial inspector can perform a walk-through survey and orally communicate his or her observations. However, the inspector’s contract with the client should specifically state the nature of the walk-through survey, including that no written report will be generated as a result.
Third-Party Commercial Real Estate Inspection
The commercial inspector and his/her team of specialty consultants are a third party to the real estate transaction, having no financial or material interest in the real estate deal. Their objective is to provide the client with an accurate overview of the condition of the property as a whole.
The commercial inspector and inspection report may identify deficiencies related to:
- poor installation and workmanship;
- inadequate design for the intended use;
- deferred maintenance;
- environmental damage or risks; and/or
- systems near the end of their service life.
Commercial properties are costly to maintain and repair, and the client’s liability extends to employees, customers, and other building occupants. The commercial property inspection can help the client reduce their risk, and potentially save them thousands of dollars in the long run. It may also aid the client in determining whether the subject property is not a sound investment.
Commercial inspections are performed on a variety of property types, including:
- permanent multi-family housing (condominiums, apartments, and townhomes);
- retail property (shopping centers, malls, and pad sites);
- office real estate (office buildings, suites, and condominiums, and medical and dental suites);
- hospitality real estate (hotels, motels, convention centers, and resorts);
- industrial buildings (manufacturing facilities, warehouses, and flex spaces); and
- specialty real estate (restaurants, car washes, churches, self-storage, schools, etc.)
Inspections are non-invasive visual examinations of Commercial Property. Commercial inspections can reveal significant defects in the property that a business owner may miss.
A commercial inspector performs a building/unit inspection, and the report carries an inspector’s objective assessment of the property. Qualified commercial inspectors will highlight material defects that could pose a significant financial or physical injury risk to the next business owner.
The inspector will create an inspection report summarizing their observations and comment on whether the issue is a safety risk, a repair recommendation, or a minor issue.
A thorough home inspection can uncover issues like mold infestation or faulty electrical systems. As a home buyer, this will give you an estimate of the maintenance required on the property.
- Foundation Inspection: Inspection of the house perimeter to check for large cracks in walls, uneven flooring structure, sink holes, loosened or cracked windows, etc.
- Shipping/Receiving Bays: Inspector will check if bay/overhead door(s) open and close as expected, whether the bay is ventilated enough, and if safety cautions are visible, loading docs, bumpers, latches, guardrails, railings, and drainage).
- Exterior Walls: Inspector inspects the walls of the property to check the damage caused by wood-loving organisms, a possible infestation of termites, etc.
- Exterior Patronage Areas: Inspector will inspect all areas of patronage (steps, stairs, handrails, sidewalks, driveways, lighting, benches, tables, doors, awnings, trip hazards, etc.
- Exterior Safety: Observe fire access roads, fire hydrants, building numbers, etc.
- Interior Safety: Observe fire extinguisher(s), (Tags, Locations), Fire sprinkler systems, (Tags, Locations), fire alarms, and emergency lighting systems, and identify exit sign(s), and firewall penetrations.
- Verticle Transportation: Inspector will inspect the elevator(s), documentation, and certificate(s), Report any deficiencies (i.e., non-functioning, physical damage, missing elements, missing inspection certificates, safety issues, etc.)
- Roof Inspection: The building inspector will check for loose or improperly secured roofing materials on the roof, signs of water damage, and the condition of the drainage systems.
- Grading: The building inspector will inspect the property to check grading around the structure of the property to verify if the level of the ground and around the building is positive, as in, water flows away from the structure.
- Attic Inspection: Inspector will inspect the access of the attic, attic structure, framing, ventilation, electrical, etc)
- Electrical Inspection: Inspector will examine the electrical connections and wiring of the building to find potential shock points or possible surges.
- HVAC Inspection: Done by a building inspector to assess the heating, ventilation, and air conditioning systems of the building.
- Plumbing Inspection: Thorough examination of the plumbing system, including sewers, supply and sewage lines, etc., done by an inspector.
- Fireplace: Inspector will inspect from exterior to interior (Damper, lintel, hearth & extension, materials surrounding, clearances from combustible materials, etc)
- Kitchen Appliances: Inspector will inspect household appliances like installed ovens, microwaves, refrigerators, filters, enclosed and protected lighting, grease buildup, inspection tags, cleaning/service certificates, type 1/2 hood(s), exhaust ducts, etc.
- Bathroom: Inspector will inspect all toilet areas, wash areas, and plumbing requirements.
- Fire Safety: Inspector will inspect for fire control systems and hazards control parameters and signage.
- Building Materials: Inspector will check for exterior materials (siding, roofing, parking lots, walk areas, catwalks, balconies, decking, exterior dining areas, etc.
- Basement: Inspector will inspect the foundation type, and materials, (walls, ceilings, floors), etc.
Your typical commercial inspection report on average is 300+ pages which will include but not be limited to pictures, videos, QR-Codes, Links, diagrams, etc.