How to Conduct a Commercial Property Inspection

June 14, 2024

When investing in commercial property in Denver, a thorough inspection is a critical step that can save you from unforeseen expenses and ensure your investment is sound.

A comprehensive inspection helps identify potential issues and provides a clearer picture of the property’s condition.

Here’s a detailed guide to conducting a commercial property inspection, highlighting key areas to focus on and common issues to look out for.

1. Preparation and Initial Assessment

Research and Documentation:

Before you even set foot on the property, gather as much information as possible. Obtain blueprints, maintenance records, and previous inspection reports. This documentation can provide valuable insights into the property’s history and potential red flags.

Professional Assistance:

Consider hiring a professional commercial property inspector. Their expertise and experience can be invaluable in identifying issues that might be overlooked by an untrained eye.

2. Exterior Inspection

Structural Integrity:

Examine the building’s exterior for signs of structural issues such as cracks in the foundation, walls, or ceilings. Check for any signs of settling or shifting, which could indicate underlying problems.

Roof Condition:

If possible, inspect the roof for damage or wear, including missing shingles, leaks, or water pooling. Roof repairs can be costly, so it’s important to identify any issues early on.

Parking and Landscaping:

Evaluate the condition of the parking lot and landscaping. Look for cracks, potholes, and proper drainage in the parking area. Well-maintained landscaping not only enhances curb appeal but also prevents potential water damage to the property.

3. Interior Inspection

Electrical Systems:

Check the electrical panels, wiring, and outlets. Ensure that the electrical system is up to code and can handle the power requirements of your business. Look for outdated or exposed wiring, which can be a fire hazard.

Plumbing Systems:

Inspect all plumbing fixtures, pipes, and water heaters. Look for leaks, water stains, and signs of corrosion. Ensure that the water pressure is adequate and that there are no signs of mold or mildew, which can indicate hidden leaks.

HVAC Systems:

Examine the heating, ventilation, and air conditioning (HVAC) systems. Ensure they are functioning properly and have been regularly maintained. Check for any unusual noises, leaks, or temperature inconsistencies.

4. Safety and Compliance

Fire Safety:

Check that fire alarms, sprinkler systems, and extinguishers are in working order and comply with local safety regulations. Ensure that fire exits are clearly marked and accessible.

ADA Compliance:

Verify that the property meets the standards set by the Americans with Disabilities Act (ADA). This includes accessible entrances, restrooms, and parking spaces.

Environmental Hazards:

Look for signs of environmental hazards such as asbestos, lead paint, or radon. These can pose serious health risks and may require costly remediation.

5. Special Considerations

Tenant Improvements:

If the property is currently leased, assess any tenant improvements. Ensure that these modifications are up to code and do not negatively impact the overall condition of the building.

Future Development:

Consider the potential for future development or expansion. Check local zoning laws and regulations to ensure that any planned changes are feasible.

6. Documentation and Reporting

Detailed Report:

After completing the inspection, compile a detailed report of your findings. Include photographs and notes on any issues or areas of concern. This report will be useful for negotiations and future reference.

Cost Estimates:

Obtain estimates for any necessary repairs or upgrades. This will help you accurately assess the true cost of the property and negotiate a fair price.

Conclusion

Conducting a thorough commercial property inspection in Denver is essential to making an informed investment decision. By focusing on key areas such as structural integrity, electrical and plumbing systems, and safety compliance, you can identify potential issues and avoid costly surprises.

At Denver Commercial Properties, we are committed to helping you navigate the complexities of commercial real estate. Since many of these inspections require professional expertise, we have a vast network of experienced inspectors ready to assist you.

Contact us today for expert advice and guidance on your next commercial property investment.