4 Parts Of A Comprehensive Commercial Property Condition Assessment
Determining the value of a commercial property can be challenging. There are many unique factors that must be considered before a commercial property can be valued properly.
Understanding how these factors work together can help you see why a comprehensive property condition assessment should be ordered in addition to a commercial inspection before you complete any commercial real estate purchase.
1. Property History
A comprehensive assessment of any property should include not only an inspection of the site itself but also research into the history of the property. Professionals that specialize in property condition assessments will check a property's title to ensure there are no open disputes, easements, or other matters that might affect your ability to take ownership in the future.
2. Building Systems
Commercial properties are made up of several systems that contribute to the overall condition of the building. These systems include HVAC units, elevators, electrical wiring, and fire suppression systems.
Deficiencies in any of these systems could lead to costly repairs after you take ownership of the property. A property condition assessment will provide an in-depth analysis of all major systems within a commercial space. You can use this information to determine whether or not you want to place an offer on the property.
3. Building Structure
All buildings need good bones to ensure that they will stand strong in the face of storms and withstand deterioration over time. Any quality property condition assessment will include detailed information on the structure of a commercial building.
You can find information on major structural elements, like the roof diaphragm or the foundation. An assessment can also tell you what you need to know about interior finishes in order to make a wise purchasing decision.
4. Site Improvements
It's not just the main building that gives a commercial property its value. Some of the value comes from improvements that have been made to the property itself. Common site improvements can include a paved parking lot, a storm drainage system, a series of outdoor lights, and any signage that has been installed on the property.
A commercial building inspection will not factor in these improvements when assessing value, so having an independent condition assessment completed by a private consulting firm will allow you to get a more accurate estimate of a commercial property's value.
Don't hesitate to invest in both inspections and condition assessments when you are considering a commercial real estate purchase. For more information, contact an architectural property condition assessment company.