Commercial property is a significant investment, whether you’ve built it from the ground up or purchased it. This is why you should go to great lengths to maintain the state of your property at all times.
Regular property inspections throughout the year will allow you to not only determine the structural integrity of the building, but also to fix any problems as soon as possible to preserve your asset. Even if you have property managers, external property inspections offer other advantages.
The proper commercial building inspection will reveal the real condition of a property as well as the expenses for repairs. It can also keep those repair bills down and fix your problems while they are minor or, worse yet, before catastrophic structural failure.
In this article, we will go over the benefits of regular commercial building inspections and why it’s an important routine in protecting your investment and the people that occupy the space.
Inspections of Commercial Buildings:
A commercial building inspector will assess a structure from top to bottom, from roof to foundation. But, before we get into the benefits of regular building inspections, let’s go over some fundamentals.
What is a commercial building?
A commercial building is defined as one that uses at least 50% of its floor space for commercial purposes, such as retail, service provision, offices, or food service (restaurants, etc.). These structures are designed to make money either through capital gains or rental revenue.
The following are some examples of commercial structures and properties:
- Distribution Centers
- Condo Complexes
- Medical Office Suites
- Manufacturing Facilities
- Shopping Malls
- Hotels and Lodging
- Storage Facilities
- Sports Facilities
- Grocery Stores
- Vacant Buildings awaiting Occupancy
- Multifamily Housing
- Office Buildings
Who performs a commercial building inspection?
When it comes to engaging a commercial building inspector, asset managers have a couple of options.
You can hire an engineer or architect. These individuals come from a variety of professions, including construction, facilities management, maintenance, and other related fields. Engineers and architects, on the other hand, will charge premium prices for their services and specific knowledge.
You can also hire a commercial building inspector. Many companies offer both residential and commercial inspections but proceed with caution. A commercial inspection is not the same as a home inspection.
It’s a good idea to pick a company that not only specializes in commercial inspections, but also recognizes that commercial properties are a company asset, a business expense, and a source of income.
What does a commercial building inspection aim to achieve?
Return on investment (ROI) and residual value are the two most important factors in commercial real estate investments. A portfolio manager wants to know, “How much is this going to set us back?” and “What is the expected return on this investment?”
This is where regular inspections bring value.
A thorough building inspection will reveal and document all major systems in a building’s infrastructure, these include:
Heating, Ventilation, and Cooling (HVAC)
Facility management teams will be more informed if major systems, like a roof or HVAC, will need to be overhauled or replaced in the coming years, or if certain electrical elements might need to be upgraded because the use of the building has changed or will be changing. These are critical insights that a building inspection can bring to light (pun intended.)
Types of building inspection reports
Building inspections provide an expert’s assessment of the property’s present condition.
Here are more types of building inspection reports that can be provided:
Pest inspection reports
Special-purpose property reports
Interior and Exterior inspection reports
Insurance Compliance Inspection
Traffic Flow Analysis Report
Benefits of Performing Regular Building Inspections:
Maintenance Costs are Significantly Reduced
Inadvertently ignoring a minor issue can quickly escalate into a high-priority, costly problem. Regular building inspections also result in a significant reduction in maintenance costs which will positively impact the long-term return on your investment.
Identifying and resolving a $1,000 issue today can save you from having to deal with a $100,000 problem down the road.
Provides Proper Documentation of the Property’s Condition
Building inspections will provide you with excellent documentation on lease violations or previously undetected damage at your property. A qualified building inspector will check for tenant damage and also assess the property’s overall condition.
Improves the Value of Your Property
Commercial property appreciation is usually based on location and the overall condition of the property. While you may not be able to choose the location of your building, you do have total control over its condition. Regular building inspections allow you to make continuous changes and, as a result, indirectly increase the value of your investment.
Increases Cash Flow
Face it – you can’t charge top-dollar for a subpar property. This is whether you are selling or renting the property. So (although indirectly) your ongoing building inspections and subsequent maintenance efforts help increase your cash flow by giving you the ability to charge a premium on either the sale or rental of the space/property.
Avoiding Distressed Conditions and Preserving Your Investment
We go to a Doctor for regular checkups to assure we are maintaining a healthy lifestyle and to address any issues that might come up as soon as possible to minimize any negative effects it will have on our life. It’s the same principle for regular building inspections.
Regular building inspections help you proactively keep your property in tip-top shape and safe for everyone utilizing the property. They can assist you in detecting major maintenance jobs early on before they become pricey. They can also increase your total return on investment by preventing your property from being distressed.
Contact Evercor To Set Up Regular Building Inspections
Evercor Facility Management can provide you with a solution to all of your commercial building needs, including your ongoing building inspections. We will help you by customizing an inspection checklist tailored to your property and the needs of that facility. Our professional inspectors will provide critical insight through our comprehensive commercial inspections.
Contact us today to set up an initial property condition assessment!