Many people take unnecessary risks and ultimately make bad investments by not performing proper due diligence. Whether you’re the purchaser of a property or a broker helping a client, it is important to learn about the inspection part of the real estate due diligence process so that no items are overlooked. Learning about the inspection is like learning anything else: the more you research and are involved, the more likely you’ll find success investing in real estate. Commercial property inspection checklists are a great learning tool for commercial real estate investing.
Commercial Property Inspection Checklist
There are many types of commercial properties, such as office buildings, restaurants, warehouses, hotels, apartment buildings, etc. Since there is such a variety, sometimes inspections are guided by the building’s nature and use. But, in any case, a building inspection generally includes the major systems and components vital to the performance of a building, including:
heating and ventilation systems;
mechanical and electrical systems;
roof surface, drainage, and penetrations;
exterior elements and fixtures;
general topography of the building site;
parking areas and sidewalks (for barriers to accessibility);
wood decks and balconies;
basement, foundation, and crawlspace;
doors, windows, and interior;
kitchen (including storage);
and other areas that are specific to the subject property.
Commercial real estate professionals, like brokers and building owners, should, at a minimum, make a mental note of the aforementioned items. They’re often the most costly to maintain and repair and can greatly affect a building’s initial financial analysis.