In order to ensure that you are making a wise investment in a property, you need to get a commercial real estate inspection. This will determine what problems you may encounter with the building and the land it sits on over the next few years. If the potential cost of repair still makes logical sense to pay for, then you can feel confident buying the property. If not, you can avoid throwing your money away on a lot cause.
Here is a look at how commercial real estate inspections differ from standard home inspections so you can get an idea of what this process entails.
The Focus Of Commercial Real Estate Inspection
In most cases, commercial real estate inspections will focus on five major components of a property: plumbing, electrical, heating and air, roofing and structure. These are the issues that are going to cost the most money to repair over time. In a home inspection, the focus includes all of those issues, plus an assortment of cosmetic and mechanical problems that would impact the quality of living in the home. On a commercial level though, it’s all about the cost of repair and whether or not it is worth the return on investment.
Maintenance Concerns For Short Term And Long Term
When inspecting a house or a commercial property, one of the big issues is the general cost of maintenance that will come with the property. How often will the plumbing need to be replaced? When will the roof need to be repaired? Will the foundation hold up over time? Etc. The only difference here is the timeframes that come with these maintenance costs. For instance, a commercial building will usually have a flat roof, which needs to be replaced once every 10-15 years. A pitched residential roof, by comparison, could last 20-50 years depending on the materials used on it.
Cost Differences Between Commercial And Home Real Estate Inspections
Commercial real estate inspections usually cost more than home inspections because they involve a much larger property to look over. Most home inspections cost $300 – $350, depending on the size of the home. Commercial real estate inspections cost an average of $0.10 per square foot, which could add up to a lot of you are buying a large building. A 20,000 square foot warehouse would cost approximately $2,000 to have inspected. This money is well worth the peace of mind you’ll get in investing a property, but it is still something you have to be prepared for. Plan to allot a decent amount of money for an inspection before you ever consider buying commercial real estate.