Whether you’re a business owner looking to purchase or lease a new space, an investor evaluating a potential acquisition, or a property manager ensuring tenants are satisfied, having an experienced commercial property inspector on your team is invaluable. A thorough inspection helps identify issues early so you can negotiate repairs or walk away from a bad deal. It also provides crucial information to budget for upgrades and maintenance.
But what exactly does a commercial property inspector do, and what skills and knowledge are required? In this deep dive, we’ll explore the commercial property inspector multifaceted role, the art and science behind it, and insights for getting the most out of your next inspection.
An Overview of Commercial Property Inspection
Inspection of commercial real estate encompasses a wide range of building types, from office spaces and retail centers to industrial warehouses and specialized properties like hospitals and schools. Inspectors examine all aspects of the building and site, typically including:
- Structural systems – foundation, framing, roof
- Exterior components – facade, windows, doors, parking lots
- Mechanical systems – HVAC, plumbing, electrical, elevators
- Interior finishes – walls, floors, ceilings
- Common areas and amenities – lobbies, corridors, restrooms
- Compliance – building codes, zoning, accessibility (ADA)
- Document review – previous inspection reports, maintenance records, blueprints
While zoning in on defects is important, the inspector is also assessing the property holistically – its overall condition given its age and location, whether systems have been properly maintained and updated, and if there are any concerning trends.
The deliverable is usually a detailed written report summarizing findings, highlighting any significant concerns, and providing repair cost estimates. For critical issues or systems requiring proprietary expertise, an inspector may recommend bringing in specialized consultants (e.g. structural engineer, HVAC technician, fire safety expert).
Armed with this information, the client can make an informed decision about pursuing the property and address inspection findings through negotiations, repairs by the seller, or budgeting future improvements into operating expenses and reserves.
The Science – Technical Knowledge
While intuition and problem-solving abilities are crucial, inspectors also require in-depth technical knowledge across many domains. Let’s look at key knowledge areas.
A strong grasp of structural engineering and mechanics of materials helps identify concerns like settlement cracks or overloaded structural members. Knowledge of electrical, HVAC, and plumbing systems provides an understanding of how things should be installed and interact.
Inspectors need familiarity with building methods and materials they encounter, from brick wall assemblies to commercial roof types. This helps identify components, understand how they fail, and notice inconsistencies.
Codes and Standards
Staying up to date on codes and standards applicable to commercial properties ensures thorough, compliant assessments. Examples include the International Building Code, NFPA safety codes, and ASHRAE standards for HVAC and ventilation.
Systems like conveyor networks or clean agent fire suppression require specialized knowledge to inspect. Familiarity with common commercial systems helps assess age, condition, and adequate capacity.
Sources of moisture intrusion and its effect on materials are a frequent source of building problems. Understanding moisture movement, vapor profiles, and areas of potential condensation helps pinpoint issues.
Knowing which documents to request, reviewing them critically, and gleaning insights from past use and modifications requires experience wading through paperwork. It also helps inform areas to scrutinize more closely during inspection.
Working With Your Inspector
If you’re hiring a commercial inspector, here are some tips to choose one that’s a good fit, and get the most out of the process.
Selecting Your Inspector
- Look for experience with the type of property you’re considering – someone with a broad commercial background may not be the best fit for a laboratory or industrial facility.
- Request sample reports to get a feel for reporting thoroughness, clarity, level of detail, and overall quality.
- Professional certifications like the American Society of Home Inspectors (ASHI) help confirm competence, though on-the-job experience is most important.
- Check references from past clients to learn about responsiveness, follow-through, and if the inspector provided helpful insights.
Preparing for the Inspection
- Provide background like previous uses, known issues, and recent upgrades. This helps focus attention on areas that warrant scrutiny.
- Make maintenance staff available to answer questions, assist access, and operate equipment.
- Have plans, past inspection reports, and maintenance records on hand for document review.
Getting the Most Value
- For large properties, consider a phased inspection so the most important areas are prioritized in an initial round.
- Be present during the inspection when possible. First-hand observations are invaluable for understanding the implications of findings.
- Walk through findings after the on-site inspection so you can discuss, take photos and ask questions.
- Consider additional specialized consultants, like a roofing expert or structural engineer, for very old buildings or those requiring major renovations.
- Use the final report as a basis for negotiations, maintenance planning, capex budgeting, and setting reserves.
A commercial property inspection requires both art and science. While technical skills help an inspector identify issues, experience and soft skills elevate their analysis to provide clients with meaningful insights. By understanding the inspector’s multifaceted role, leveraging their expertise, and heeding their findings, you’ll be better positioned to make sound decisions in commercial real estate.