You will want to ensure the company hired for the report is accredited. Industrial standards are in place for building condition reports, allowing for sound decision-making and negotiating when purchasing a commercial property.
What is a building condition report and why do I need it?
A building condition assessment or property condition report is your first step to completing your due diligence when considering buying a commercial property of any kind. Often lenders and investors will request such a report. It can be an extremely useful tool in negotiating price, in knowing what to expect as far as repairs and upgrades that are required now and in the future. The report will help you determine if this property is the right purchase for your requirements.
A property condition report is to commercial buildings what home inspection reports are to residential purchases. It is common practice for offers on commercial buildings to be conditional on the building condition assessment coming in with a favourable report. The cost of this report is well worth the investment in knowing what you have, what it will cost you in the future and any areas of concern. The reports are detailed with photos, written documentation on each component including deficiencies, repair and maintenance histories and quite often include interviews with maintenance and facilities operations.
You will want to ensure the company hired for the report is accredited. Industrial standards are in place for building condition reports, allowing for sound decision-making and negotiating when purchasing a commercial property.
What is included in a building condition report or assessment?
As mentioned above the report will include existing condition, what repairs are needed now and what will be coming your way down the road. The building condition report can include items such as:
- Interior building finishes, tenant areas, the components of each
- Exterior of the building including roof, walls, doors, windows, even stairs
- Mechanical including elevators, air conditioning, heating systems, plumbing, ventilation etc.
- Structural deficiencies in the floors, walls, roof, foundation
- Fire safety codes and other municipal and safety regulations are met
- Grounds are inspected for items like signage, lighting, fencing, pavement, landscape and irrigation
All in all the property condition report is an in-depth report giving you the knowledge you need to make a successful purchase. You can find more resources on the BDC.ca website as well.
You can rely on Absolute Appraisals & Consulting Inc. to provide you with commercial building inspections that provide the information you need for optimal decision-making.