Commercial Property Inspection: What to Expect

Key Takeaways:

• A commercial property is defined as one solely designated for the purpose of generating income for the property owner.
• A commercial property inspection is typically performed during the buying/selling process. It’s a general overview of the building’s interior and exterior structure and systems.
• While a commercial property inspection may be similar to a residential property inspection in some ways, they differ in scope, report complexity, cost, and time to complete.

All commercial properties need regular inspections to ensure they remain safe and usable. Commercial properties are major investments. As such, buyers, owners, and realtors need to know that they’re making a good decision. Inspections are meant to identify potential hazards, fixes, or other problems that can affect a commercial property. 

In this article, we’ll take a deep dive into what’s included with a commercial building inspection, how it differs from a residential home inspection, and how you can prepare for the process.

What’s a Commercial Property Inspection?

The state of Massachusetts defines commercial property as property intended by the owner to generate income. This includes:

• Apartment buildings
• Multi-office buildings
• Retail spaces
• Sports facilities
• Restaurants or other food services
• Industrial warehouses
• Any other property used for income purposes

In other words, if you are buying property so that you can make money from it, whether by collecting rent or opening a shop, that is a commercial property. 

A commercial property inspection is a tailored assessment of key building systems, roofing, HVAC units, and structural components for realtors, investors, and buyers of non-residential real estate. Inspectors typically assess elements like parking lots, common areas, and ADA accessibility.

What’s Included

Your professional inspector will generally look for safety hazards or code violations among the following interior aspects of your commercial building:

• Floors
• Ceilings
• Walls
• Partitions
• Plumbing systems
• Elevators or escalators
• Lobbies
• Electrical systems
• Fire safety features
• Emergency exits
• Appliances
• ADA compliance
• Climate control

They will also inspect exterior elements:

• The building’s frame
• Landscaping
• Outside lighting
• Outdoor HVAC elements
• Roofing and drainage
• Fences
• Parking lots
• Exterior sprinkler systems
• Walkways
• ADA compliance

It’s important to note that commercial property inspectors only look at the general condition of these elements. They do not make repairs and cannot offer suggestions for repair professionals. Their job is to provide you with an overall report detailing the condition of your commercial property.

For buyers, this may affect whether they move forward with their investment. For sellers, these reports can help you update your property so it is safe, compliant, and in good working condition before you sell it.

Commercial Vs. Residential Inspection

If you’ve ever bought a new home, you’re probably already familiar with the process of a professional inspection. And while a commercial property inspection is somewhat similar to that of a residential property, there are a few key differences:

Scope

• Residential: Standard home systems, roof, foundation, plumbing, electrical.
• Commercial: Complex building systems, parking lots, accessibility features, and commercial HVAC.

Report

• Residential: Straightforward, easy-to-read computerized report with photos.
• Commercial: Highly detailed, technically complex documentation of commercial systems.

Time to Complete

• Residential: Typically 2 to 4 hours, depending on the home’s square footage.
• Commercial: Often takes a full day or multiple days, depending on the facility size.

Cost Range

• Residential: Starts around $700.
• Commercial: Varies greatly based on square footage, use case, and building complexity.

Who Attends

• Residential: Attendance is not required, but homebuyers and their real estate agents are encouraged to attend the inspection.
• Commercial: Investors, property managers, commercial realtors, and maintenance staff.

Radon Testing

• Residential: Available as an additional service.
• Commercial: Available for some properties, depending on the building structure and use.

Because commercial properties vary greatly in size, use, and age, and because they are intended for business use, commercial inspections are much more detailed than those for homes.

Factors to Consider

Before you finalize a purchase on an investment commercial property, we recommend the following considerations:

• Hire a reputable and experienced commercial home inspector. Their expertise and skill set will be different than that of a residential home inspector.
• Your commercial inspector may bring specialists to handle elements such as elevators or industrial HVAC systems.
• You have the right to ask questions or get clarification on any part of your commercial property inspection.

FAQs: Commercial Property Inspections

Q: How can I prepare for my commercial building inspection?

A: Your commercial property inspection will go a lot smoother if you’re prepared:

• Have all documentation at hand, including (but not limited to):
• Maintenance records
• Warranties
• Certificates of Occupancy
• Repair invoices
• Notices of code violations
• Make sure the inspector will have full access to the entire building and its systems, including keys and codes.
• Your inspector may give you a pre-inspection agreement before they start, which includes the scope of the inspection and the cost. Read it carefully before signing.

Q: How long will my commercial property inspection take?

A: Depending on the size and scope of the property, inspection can take anywhere from several hours to a few days. The more prepared you are for the inspection, the faster it will go.

Q: Do I need to be present for my commercial property inspection?

A: Legally, no, you do not need to be present. However, we strongly recommend you attend the inspection so that you can ask questions and understand the process.

Q: Is a commercial property inspection required by law?

A: No. However, banks or other lenders may require a 21E report as part of their due diligence before proceeding with a transaction. A 21E assessment evaluates a property for potential contamination from hazardous materials and determines whether any investigation or cleanup is required under Massachusetts law.

Trust Tiger With Your Investment Property

Tiger Home Inspection is not only the #1 residential inspection company in Massachusetts, but we also do commercial inspections! Our reports are property-specific and tailored to your needs. We offer convenient scheduling 7 days a week. All of our inspectors and office staff are fully trained and qualified to help answer your questions.

Contact us today to find out more about our trusted inspection services!