When purchasing a property, inspections are a huge part of the process. Commercial inspections are a good way to ensure you do not come across any surprises during the buying process.
What Is a Commercial Inspection?
During a commercial inspection, an inspector looks at various different things on the property to determine its condition. One thing that is searched for during an inspection is any safety issues. Usually, anything that is considered a safety risk is required to be fixed before closing on the property.
What Is Considered a Commercial Property?
There are a lot of things that are considered commercial property, but a single-family home would not be considered commercial.
Some other examples of properties that are considered commercial can include:
- Office buildings
- Coffee shops
- Storage facilities
Commercial properties are properties where the purpose is to generate an income. Because of this, a multifamily home is considered commercial. Even if the owner lives in one of the units in the multifamily home, the property still generates an income from the other tenants on the property.
What Does a Commercial Inspection Consist Of?
When someone purchases a commercial property, their goal is most likely to make money. This means it is important for buyers to know the state and condition of the property before taking the plunge. A commercial inspection will find safety concerns and can let the buyer know the condition and lifespan left on certain areas of the property. Anything that does not meet the building code of that location will most likely need to be fixed before the completion of the buying process.
Some of the most important areas of a commercial property that need to be checked include:
- Heating, ventilation, and cooling (HVAC systems)
- Structural integrity
A lot of the commercial inspection process will take place indoors because there are more things to check there. However, the inspector is also responsible for inspecting the exterior of the property as well. Any secondary building on the property will be inspected, along with the parking lots and landscaping.
An inspector may also turn to documentation on the property for more information. This helps the inspector give a more accurate final report.
Some of the things an inspector may look into can include:
- Evacuation plans
- Construction permits
- Floor plans
- Maintenance records
Inspections are typically required by the lender when purchasing a property. There are exceptions and times you may not be required to complete an inspection to secure a line of credit. However, it is always recommended to complete an inspection, regardless of the requirements, before committing to an investment as large as a property.