Commercial Real Estate Inspections

Before investing in commercial property, inspections provide essential peace-of-mind. Professional inspectors possess all of the skills necessary to give clients assurances that their investment is safe.

Becoming a commercial real estate inspector can follow various paths. No matter the path taken, building strong networks is key in expanding an inspector’s clientele and team members – whether these include other inspectors or specialty consultants.
Building Systems

Building systems include all equipment and amenities installed by landlords within the core and shell of their buildings, such as heating/cooling systems, electrical wiring (for kitchens/bathrooms/sewage disposal), fire alarms/sprinklers/fire suppression systems as well as phone/data communications – which all must be inspected as part of an annual property condition assessment.

Commercial and industrial properties differ from residential real estate in that they generate income through business operations; as a result, investors, insurance lenders, portfolio companies, and commercial mortgage-backed security lenders often require property condition assessments prior to investing or lending money on buildings.

An effective career as a commercial inspector requires knowledge of building systems and their effects on property. Building system inspections play an integral role in their jobs, so it is crucial to find out which aspects you find most fulfilling in this work. Furthermore, building strong connections will enable you to secure clients faster as well as recruit team members or specialists as specialists to assist.
Exterior

Commercial real estate inspectors inspect the exterior of properties in detail. Their examination includes inspecting walls, roofing, landscaping and parking lots – an exhaustive process which takes considerable time and requires attentiveness to detail.

Commercial real estate inspectors must understand how exterior issues can compromise the structural integrity of a building and lead to costly repairs in the future. Failing to properly maintain can result in extensive repairs later; moisture damage must also be carefully checked for.

Finding a qualified inspector is best accomplished through referrals from other professionals and online reviews of inspectors in your area. When viewing an inspector’s website, be sure to see their scope of work and testimonials from previous clients; but avoid inspectors that list real estate agents as references as this could compromise impartiality.
Interior

Commercial buildings must meet local codes for safety of both customers and workers, so the interior is often subject to an inspection to assess compliance with local regulations and ensure it complies with safety measures. An inspector will look for signs that violate them such as offices being overly cramped; broken toilets; unfinished walls/floors being unsafe etc.

Inspectors will examine records such as appraisals, maintenance contracts, building plans, citations, certificates of occupancy, insurance claims, evacuation plans, environmental studies, fire safety system records and floor/room layouts to compile a property condition report with written statements and photos to provide clarity.

Clients should arrange to have the building owner or manager available for interview during the inspection process, granting access to any documents, information and previously generated reports that are in their possession; any sources which restrict, limit or delay this access must be noted in their report.
Reports

Commercial real estate inspectors produce written reports which detail  Melbourne Building Inspection        their findings from walk-through surveys, documents acquired during inspection and any third-party reports ordered as part of the inspection process.

Building inspections provide portfolio companies with an accurate snapshot of a property’s condition, making them essential when considering real estate investment opportunities. Companies need to know whether roof or HVAC replacement will become necessary soon and whether costly electrical components are functioning as intended.

An commercial real estate inspector may recommend changes or improvements to reduce risk at a property, such as increasing safety features or installing more fire suppression, to make loss prevention upgrades. These recommendations typically go to insurance underwriters for approval; should their approval fail, companies could lose funding to buy property – therefore it is imperative that a thorough report from an inspector be generated.