As a CRE owner or operator, arranging regular commercial building inspections is a must. It’s how you ensure a building is safe, well-maintained, and compliant with local building regulations.
What is a commercial property inspection?
A commercial real estate inspection is a thorough evaluation of a building’s condition, including its structural integrity, systems, and overall functionality. The goal is to identify any potential issues that must be addressed to avoid costly repairs and compliance challenges.
Ultimately, building inspections are an essential part of analyzing commercial real estate deals and strengthening commercial real estate risk management.
Commercial property inspection vs. residential property inspection
While residential and commercial inspections share some attributes, there are important differences:
| Commercial property inspections | Residential property inspections | |
| Property type | Larger, more complex buildings, such as offices, retail stores, industrial buildings, and apartment complexes | Smaller, simpler structures, such as single-family homes, condos, townhomes, and duplexes |
| Scope | Safety, environmental impact, accessibility, structural and mechanical systems, compliance with local building codes and zoning regulations | Habitability, safety, building code compliance, and systems like HVAC, plumbing, roof, electrical, etc. |
| Duration | Days (or longer) depending on the property size and complexity | Few hours |
| Cost | $1,000 to $10,000 or more | A few hundred dollars |
What does a commercial property inspection include?
When you order a commercial real estate inspection, it usually comes with the following:
- Document review: The inspector reviews building plans, maintenance records, lease agreements, previous inspection reports, and other property documents to understand the property’s history and any ongoing maintenance or compliance issues.
- Walk-through survey: The inspector walks through the property to assess its exterior, interior, structural elements, and systems. Any signs of damage or wear are usually documented via photographs and detailed notes.
- Inspection report: The inspector compiles a comprehensive report outlining the inspection findings, including maintenance needs, potential risks, and recommended repairs. Often, the report includes repair estimates and a list of which repairs to prioritize.
Who conducts commercial property inspections?
Commercial building inspections are generally performed by professional property inspectors. Many are certified by industry organizations like the Certified Commercial Property Inspectors Association (CCPIA) or the International Association of Certified Home Inspectors (InterNACHI). However, there’s no nationwide licensing requirement for commercial property inspectors.
Depending on the building type and complexity, you may also want to consider hiring an engineer or architect to perform a commercial real estate inspection. They have specialized expertise that may be better suited for complex structural damage or system issues.
What does a commercial property inspector look at?
Commercial inspections vary in scope based on a building’s size and complexity, but here are the areas that are typically evaluated:
- Building systems: This involves checking the building’s electrical, plumbing, HVAC, fire safety, elevators, escalators, and other systems for functionality, safety, and regulatory compliance.
- Structural elements: This involves checking the building’s foundation, frame, and roofing for cracks, leaks, and overall structural integrity.
- Property exterior: This involves checking the building’s walls, windows, doors, and landscaping for signs of wear, safety, and overall curb appeal.
- Property interior: This involves checking the building’s flooring, windows, ceilings, and interior walls and doors for safety and accessibility.
- Environmental factors: This involves checking the building for the presence of hazardous materials like asbestos, lead, and mold, which may violate safety standards.
Factors influencing commercial property inspection costs
The cost of a commercial real estate inspection can be anywhere from $1,000 to $10,000 or more, depending on the property’s size, age, location, and local regulatory requirements. Here’s a breakdown of how each factor can influence the price:
Property size
Larger and more complex properties take more time to inspect, resulting in a higher cost. For example, a sprawling warehouse or giant shopping mall will cost more to inspect than a small office building or retail storefront.
Property age
Older buildings often need closer scrutiny due to their higher chance of having outdated systems and materials. Commercial inspectors must ensure the building is still up to code, resulting in longer commercial inspections that could drive up costs.
Property location
In high-cost urban areas, commercial inspector fees may be higher due to increased demand and higher local wages. At the same time, a remote property may come with added travel costs, which are often included in the inspection fee.
Local regulatory requirements
Certain jurisdictions have stricter inspection standards or require specialized assessments. For example, if the property is in an area prone to natural disasters, additional inspections for wind, flood, or earthquake resilience may be required, adding to the overall inspection cost.
Common issues found during commercial property inspections
Here are some of the most common issues uncovered during commercial inspections:
Structural
A commercial building inspection may reveal settling and cracks in the foundation, a sagging or leaking roof, the deterioration of columns and beams, and other issues. If left unaddressed, these could become serious safety hazards and threaten the building’s structural integrity.
Electrical
Commercial properties tend to have complex electrical systems. Common problems with them include outdated writing, overloaded circuits, and inadequate electrical panels. Detecting such issues early is the key to maintaining safety standards and avoiding potential fire hazards.
Plumbing
Functional plumbing is a crucial part of any commercial building. However, it’s often compromised by leaking pipes, clogged drains, low water pressure, faulty fixtures, and corrosion. Property owners should address such issues before they turn into bigger problems.
HVAC
Heating, ventilation, and air conditioning (HVAC) systems are essential for keeping a commercial building safe and comfortable for tenants. Common issues include poor insulation, improper ductwork, insufficient airflow, and inadequate temperature control. By addressing these promptly, you can improve tenant satisfaction and save on energy costs.
Environmental hazards
Commercial properties are subject to potential environmental hazards, including asbestos, lead paint, mold, and radon gas. Property inspectors must thoroughly check for these to ensure the building is safe for tenants and up to code with local environmental standards.
When to conduct a commercial building inspection?
You typically get a commercial building inspection before buying or leasing a property. This helps you to evaluate the space, ensure it will meet your needs, and avoid costly surprises later.
However, those aren’t the only times to get commercial inspections. As a building owner or operator, you also want to conduct routine maintenance inspections about once or twice per year. This helps you identify issues before they turn into costly repairs. In addition, it’s wise to order an inspection after a natural disaster to check if the property is safe to occupy.
How to prepare for a commercial property inspection
Preparation is key to ensuring your commercial building inspection runs smoothly. Here’s a step-by-step guide to help you get ready:
Review property documents
Start by reviewing building plans, maintenance logs, previous inspection reports, lease agreements—anything that will give you and the commercial inspector a clearer understanding of the building’s history, past repairs, and any known issues.
Conduct a preliminary self-inspection
Before the official inspection, do a walk-through of the building yourself (or with your facilities team). Check for obvious issues like water leaks, cracks in walls or ceilings, and broken HVAC systems. By addressing these issues ahead of time, you can leave more time for the commercial inspector to focus on deeper, more technical concerns.
Ensure accessibility to key areas
Before the inspector arrives, ensure all relevant areas of the property are accessible. This includes utility rooms, mechanical spaces, basements, rooftops, and tenant-occupied spaces. You may need to clear obstructions and prepare relevant access permissions.
Check for safety hazards
Inspect the property for immediate safety risks, such as exposed wiring, slippery floors, or unstable structures. Addressing these issues in advance can help prevent injuries and demonstrate your commitment to proactive commercial building management.
Verify compliance with local regulations
Review your commercial building’s compliance with local building codes, zoning laws, and safety regulations. If there are any outstanding violations or pending permits, it’s best to resolve these upfront or at least have documentation ready to show your plan to resolve them.
Notify tenants and stakeholders
If the commercial building is occupied, notify tenants, property managers, and other stakeholders about the upcoming inspection. Let them know the date, time, and any areas the inspector will need to access. This avoids unnecessary disruptions and ensures smooth cooperation during the visit.
Gather maintenance and repair records
Finally, gather a complete record of all recent repairs, system upgrades, and maintenance performed on the property. This lets the commercial inspector see the building in context so they can better evaluate what work needs to be done.
Conclusion
Regular commercial building inspections are more than just a checkbox on your to-do list—They’re essential for preserving your investment, ensuring safety, and maintaining compliance with evolving regulations. By understanding what commercial inspections cover, the commercial inspection process, and what you need to do to prepare, you can turn them into valuable opportunities to boost your commercial property’s condition and performance.
Whether you’re preparing to buy, lease, or simply maintain a building, commercial inspections will always play a vital role in finding great commercial real estate deals and ensuring responsible property ownership. With this guide, you’re well-equipped to navigate the process confidently in 2025 and beyond.
