Why investing in a commercial property inspection is important for both buyers and sellers

Purchasing, selling, or leasing a commercial property is an extensive process. For a purchaser the best location has to be chosen to maximize the potential for profits. For the seller or leaser of a property the building must be made to look appealing for potential buyer. So how does a commercial property help both the buyer and the seller?

For the seller

A commercial inspection is essential to selling a commercial property in order to ensure that you do not incur any financial losses due to “unseen” problems. Many times an inspection is required by law prior to selling a property. By taking the initiative and getting an inspection that meets the ASTM E2018 professional standard, you are ahead of the game. This is a selling point in itself. If the potential buyer sees that you have recently performed an inspection of the property and you have clearly laid out any issues which were found with the inspection, the purchaser will be more apt to consider the property (they will not feel as if you are trying to hide anything).

The commercial inspection also serves the seller as a guide as to what the purchaser may request to be fixed or deducted from the selling price of the building. For example: If the heating and air conditioning system has a blown compressor than more than likely that would be an issue that you would need to fix, replace, or reduce off of the price of the building. On the other hand, if the building inspection passes and there are no issues, you can use the inspection to your advantage should an “issue” arise from another inspector (keep in mind that real estate agents often hire inspectors which they know will find an “issue” with the property in order to help them drive down the selling cost to their client). Overall, a commercial inspection is a piece of mind and a selling point for any property.

For the purchaser

If investing in a commercial property it is paramount that you have the property inspected. This is especially true if you are looking at a property which is advertising a quick sale or various other options to get it off the market quickly. Like most investments, you should approach the purchase with caution and common sense. As many commercial properties are sold under the “AS IS” contract, you need to ensure that you are aware of any issues which the building may have.

One example of an issue which could cost you thousands of dollars would be if there is a problem with the foundation of the building. You would at minimum have to fix the foundation (which may or may not require having the building lifted). If the foundation proves to be damaged and non-repairable you would end up with a building which would not pass the building and zoning and end up with a giant paperweight that you cannot use.

On the other hand, if you have a commercial property inspection conducted and there are no issues (or minor fixes which are common) then you will have that piece of mind going into the investment. By having an inspection done on a commercial property you also have bargaining leverage when it comes to the purchase or lease. Many times sellers/leasers will negotiate prices dependent upon the fixes which are needed to a building. Please note that some fixes are required by law to be addressed prior to selling a property and you are encouraged to research what these regulations are in your area.

So what does a Commercial Inspection from Capstone Commercial Building Inspectors include?

Capstone Commercial Building Inspectors provides you with a detailed inspection of your property using the top industry professionals to do the job. This includes using professionals in electrical, mechanical, fire safety, crane, elevator, HVAC, plumbing, or environmental scientists. We can even cater the inspection to go beyond our ASTM E2018 professional standard dependent upon your needs.

Our typical inspection covers the following elements:

• Roof
• Attic
• Exterior walls
• Interior walls
• Ceilings
• Electrical
• Plumbing
• Restrooms
• Floors
• Foundation
• Crawl Space
• Basements
• Heating and Air Conditioning Systems
• Parking areas

We also include in our commercial building inspection the use of Infrared Thermal Imaging for Energy Loss Surveys, Electrical Inspections, and Flat Roof Scans. This is done for two reasons. First, thermal scans show what most common inspectors may miss. Our goal is to provide you with the most accurate inspection. Thermal imaging allows us to provide you with the best services. The second reason that we include thermal inspections is that a great deal of insurance companies will offer discounts to purchasers who have annual thermal electrical inspections to the property. If it helps us do our job better and it helps you with your insurance rates, we think that it is a process that should not be avoided.

Capstone Commercial Building Inspections would love to answer any inquires which you may have. Please feel free to contact us with any questions or special requests.