Before you lease or buy a building, it is very important that you get a detailed snapshot of its current condition. If this step is overlooked, you risk facing sizable expenses down the road:
If you purchase a building where maintenance has been poor or where key equipment is reaching the end of its service life, you may have to assume major expenses in the short term.
The same applies for leasing: Tenants are often responsible for building maintenance, and they may be held liable for previously existing conditions if they fail to assess them.
With a pre-lease engineering report, you can only be held liable for issues that occurred once the building was under your responsibility. On the other hand, if a previously undetected issue shows up once you have leased a space, you have no way to prove it already existed – the associated expenses can be significant for large equipment such as generators and compressors.
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