When buying a commercial building, real estate investors are well served to engage a high quality building engineering due diligence firm to conduct a Commercial Building Inspection. Commercial Building Inspections are also referred to as Property Condition Assessments.
When clients call me for a Commercial Building Inspection, I make every effort to understand their needs. Often I propose a walk through inspection, were an experience building inspector walks through the asset and inspects all building systems. The inspector prepares a comprehensive Property Condition Assessment Report which includes a discussion of the following building systems:
– Building Envelope;
– Mechanical, Electrical, and Plumbing;
– HVAC Equipment
– Fire Suppression and Security Systems;
– ADA Compliance.
My inspector will include in the report an Immediate Repairs Table and a Replacement Reserves Table. The second table will typically estimate the building’s capital replacement schedule for the next twelve years.
When clients are looking for a more detailed report I offer a Property Condition Evaluation report which includes specialist inspections. The most common specialist to add is that of a structural engineer. The structural engineer will produce a structural report or a Probable Maximum Loss Report, when in seismic zone 3 or 4.
Other specialists that add great value are mechanical specialist, roof specialists, and elevator specialist. The specialist invests 4 to 8 hours inspecting only the one system. For example, the HVAC specialist will turn on the air conditioning system in the dead of winter. The specialist opens up the systems being inspected and collects parametric data. The result of the more detailed inspection is a very detailed report with specialty reports in the appendices. Partner Engineering’s project manager and field inspector is almost always a registered engineer or very senior building inspector.
In two out of three engagements, we help our client get a significant adjustment from the seller. In one out of three engagements, we help our clients get a adjustment of 5 times our fee or more from the seller. This service really pays for itself!