role of building inspections in commercial real estate transactions
  • May 13, 2024
  • Effective Building
  • 0
Given that building inspections play an important part in residential property transactions, these inspections are even more essential in commercial real estate transactions.

Commercial Inspections vs Residential Inspections

What makes a commercial building inspection different from a residential building inspection:

Unique Requirements

Unlike residential properties where the purpose of the building is to be suitable for a family to live in, commercial properties cover a greater range of uses. This means that commercial building inspections have to be tailored to the nature of the commercial activity. A mall is different from a factory and a hotel is different from a clinic. Each property will have highly specific requirements depending on its intended purpose.

Long-Term Mindset

Commercial properties also need to last longer. If you think home renovations are expensive, then the cost of redoing commercial structures can shock you. Furthermore, these renovations may impede business functions since some areas will be unusable for a time. Therefore, commercial building inspections have to be extremely comprehensive so that properties require minimal changes over the decades.

More People Involved

While a home will only need to accommodate the needs of 2-7 people usually, a commercial building has to take into account the needs of hundreds or thousands of people. To meet these needs, commercial properties are much larger and have higher system requirements. Commercial building inspections have to include a lot of space and surface. Checking if areas are actually accessible and emergency-ready is also a key consideration.

Why a Commercial Real Estate Transaction Needs a Commercial Building Inspection

If you’re thinking of buying commercial real estate, just remember that the consequences of missed defects are exponential. If people get injured or worse due to a faulty building, you’ll potentially have to pay millions worth in damages to those affected. Having the commercial property inspected isn’t just a wise choice financially; it’s a moral decision as well. 

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About Elie Farah

Elie Farah is a Building Consultant with over 25 years of experience in the property industry. Elie has specialised knowledge in development acquisitions, blue-chip properties and inspections, as well as flood-affected and waterfront properties, heritage buildings, bushfire management and existing use rights.

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