If you are know how to play the commercial real estate renovation game you might buy a small building for less that its value, renovate it, and sell it for a higher price than the market value. However, unless you take the commercial property inspection guidelines into consideration, you may be looking into a property that is not quite worth your time or effort. There are several ways you can inspect a commercial property before investing in it.
Personally visit the property
You can find out a lot when you visit a property physically. You can meet the tenants and know what they are like, find out how well the parking copes during peak hours, how the surrounding looks like and the activities that go on and so much more. You should check the property at different times of the day.
Inspect the HVAC system
You should find out if there are any issues with the climate control system in the building. Ideally, there should be no leakages from pipes; the HVAC ducts should be working properly; there should be no cracks in the roof; and the ceiling tiles, concrete, and glass should all be intact.
Observe a building’s foot traffic & Accessibility
If a building is in a busy metropolitan area, you should find out the people who usually go through the building. You might be able to identify potential problems such as school kids who cut through the parking lot looking for cars with valuables. You should further consider the accessibility of the building itself taking into account it’s location from main roads and other dangerous areas.
Inspect interior flooring
You should make sure that the floor is designed to be safe for children or accessible for people on wheelchairs. The material should be durable and easy to manage. Carpets are still quite popular.
Look out for and note any physical defects that might be a safety concern or need extensive repair. These may include but are not limited to: ceiling tiles, flooring, ventilation, furniture, waste removal, chimney, fireplaces and windows.
International Standards for Property Inspection
Over and above these basic commercial property inspection suggestions it is highly advisable that you follow the international standards for commercial property inspection. These are openly available HERE. It is also advised that you consult a broker, property manager or inspector before moving forward with any commercial property ventures.