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What to Expect on a Commercial Building Inspection Report

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What to Expect on a Commercial Building Inspection Report

The biggest challenge while managing or owning a commercial property is risk management. It’s the commercial building inspection report that is known as the most crucial tool to help you evaluate the risk. Suppose you are purchasing a retail plaza, leasing an office space, or managing a multi-tenant facility. In that case, the report gives you a bird’s-eye view of the condition of the structure, system, and safety standards.

What is a Commercial Building Inspection Report

A commercial building inspection report is a detailed document prepared after a professional assessment. It evaluates the building’s visible and accessible components, everything from the foundation to the HVAC systems. The report contains information about both existing issues and potential future concerns. We can say that it’s not just a paper, it’s an insight.

The findings in a commercial inspection report always guide you to plan your next step with the property. Let’s discuss the most common findings our commercial inspectors have found during an inspection.

Common Findings in Commercial Building Inspection Reports

In inspection reports of commercial buildings, the following concerns are common:

1. Compromised Efficiency of HVAC Systems

Most commercial HVAC units have a life expectancy of 15-20 years. By the end of their lifespan, or if they have not been maintained properly, these units reduce their efficiency. Our inspectors frequently find:

  • Rooftop units rusting or leaking.
  • Inconsistent temperature zones.
  • Missing service records.

Replacing a commercial HVAC unit can cost tens of thousands of dollars. You must get into the details about the efficiency of a commercial HVAC system before buying the property.

2. Roofing Problems

The roof of a building is often one of the first problem areas identified. Leaks from roof damage may not show up until structural damage occurs in the building. The inspectors commonly flag:

  • Ponding water.
  • Cracked membrane or missing flashing.
  • Temporary patchwork repairs.

The roof inspection is crucial for budgeting and liability. Any issue with the roof can lead to major concerns inside the building.

3. Plumbing Issues

Even well-maintained buildings can have plumbing issues. Common issues with the plumbing system can be:

  • Corroded galvanized pipes.
  • Inadequate water pressure.
  • Evidence of prior leaks or patch jobs.

Plumbing repairs inside walls or under slabs are invasive and expensive. The older buildings, in particular, hide plumbing risks that can impact operations or tenant comfort.

4. Electrical Deficiencies

Electrical deficiencies raise safety concerns in a building. Commercial inspection reports show the following issues as common in the buildings:

  • Overloaded breaker panels.
  • Double-tapped circuits.
  • Unlabeled or outdated wiring.
  • Lack of GFCI protection near wet areas.

Beyond fire hazards, outdated electrical systems can’t support modern business needs and often require costly upgrades to comply with local codes.

5. Poor Drainage or Site Grading

Drainage issues are often overlooked in a commercial building until major issues are faced. Improper grading can lead to water intrusion, basement leaks, or foundation deterioration. On the exterior, drainage issues are a common theme:

  • Water pooling near the foundation.
  • Inadequate slope away from the building.
  • Signs of erosion or soggy landscaping.

The older commercial properties are more likely to have such problems.

6. Cracked Foundation or Settlement

Some cracks are cosmetic, which means they raise no major concern, but others may signal structural instability. It’s not always, but in the areas with soil settlement issues, inspectors have noted:

  • Horizontal cracks in walls.
  • Uneven floor slabs.
  • Signs of shifting or previous repairs.

Having such mentions in your inspection report requires you to consult with structural engineers.

7. Water Stains or Signs of Mold

Even if the mold testing is not a part of the inspection, signs of moisture intrusion can raise red flags. Inspectors often mention in the reports:

  • Stains on ceiling tiles or drywall.
  • Musty odors or visible surface mold.
  • Poor ventilation in utility areas.

It is essential to keep a commercial building mold-free. But mold remediation can be costly if the issue persists for an extended period.

8. Fire Safety & Code Violations

Fire safety issues are considered red flags when it comes to insurance and inspection. It compromises the safety of tenants. Commercial building inspections frequently uncover:

  • Expired or missing fire extinguishers.
  • Malfunctioning smoke detectors or alarms.
  • Emergency exits blocked.

The issues with fire safety must be fixed before occupancy in a commercial building.

What Happens After These Common Findings in the Report

It can be overwhelming to see a long list of problems in a commercial building inspection report. But not everything in the list is a deal breaker. You just need the right approach to get it all fixed. You should:

  • Prioritize issues: focus on safety, structural, and system-critical problems.
  • Get estimates: Use the report to request repair quotes and use it for negotiations.
  • Bring in specialists: formold, foundation, or asbestos concerns, hire experts.

Expect Issues, But Use Them to Your Favor

Almost every commercial building inspection report will turn up issues. That’s not a bad thing. These buildings are challenging to maintain. The inspection report is a tool that helps you understand the actual cost of owning the building. Having information about the common findings in commercial inspection reports supports you in negotiations by providing clarity and confidence. 

If you are preparing to buy, lease, or invest in a commercial property, don’t settle for a generic report. Choose GreenWorks Inspections and understand both compliance and what matters to your bottom line. Book an inspection to know what you are going to deal with.