Why a Comprehensive Commercial Inspection Is Critical Before You Invest πŸ’πŸ”

Investing in commercial real estate isn’t like buying a single-family home. The stakes are higher, the systems are larger and more complex, and the financial exposure can be significant. A comprehensive commercial inspection should be one of the first steps you take before closing on any deal, not an afterthought once contracts are already signed.

Commercial buildings contain multiple high-value systems that directly impact operating costs and tenant satisfaction. Roofs, HVAC units, electrical distribution, plumbing, structural components, fire safety features, and accessibility elements all play a role in whether a property performs as expected. A professional commercial inspection evaluates these systems together, rather than in isolation, to give investors a realistic picture of overall condition. βš™οΈ

One of the biggest advantages of a commercial inspection is identifying deferred maintenance before it becomes an expensive surprise. Aging rooftop units, deteriorated roofing membranes, overloaded electrical panels, or hidden moisture intrusion can quickly turn a seemingly solid deal into a cash drain. Knowing what is near the end of its service life allows investors to budget accurately and avoid underestimating future capital expenditures. πŸ’Έ

Commercial inspections also uncover safety and compliance issues that can affect liability and insurability. Missing handrails, damaged stairways, inadequate fire separation, improper emergency lighting, or non-compliant egress routes can expose owners to risk and may require immediate correction after purchase. These findings are especially important for properties open to the public, such as retail centers, offices, and mixed-use buildings. ⚠️

From an investment standpoint, inspection findings are powerful negotiation tools. When deficiencies are documented clearly, investors can request price reductions, seller credits, or repairs prior to closing. Even when sellers won’t make concessions, inspection data helps buyers decide whether a deal still meets their return requirements or if it’s better to walk away. πŸ“Š

A quality commercial inspection also supports smarter long-term planning. Inspection reports help investors prioritize repairs, plan capital improvements, and understand which systems need monitoring versus immediate action. This clarity allows for better underwriting, more accurate cash-flow projections, and fewer surprises during ownership.

Skipping a commercial inspection is rarely a true cost savings. In most cases, the issues that go undetected before closing end up costing far more in repairs, downtime, or lost negotiating leverage. A thorough inspection provides insight, reduces uncertainty, and helps investors move forward with confidence instead of guesswork. βœ…

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Shared Meters – Look Out!

It’s a rare occurrence, but every now and then we come across shared water or gas meters when inspecting houses. This is most often the case with duplexes or other multi-family properties that may have once been single family homes but were later converted into two or more dwelling units. It’s easier to leave the existing meters in place, along with their main shut-off valves, but this poses a major potential problem that unsuspecting buyers could easily overlook. If the home has been divided and the water or gas shut-offs exist in only one unit, what do tenants who don’t live in that unit do in the event of an emergency? If a water line bursts and the tenant occupying the unit with the shut-off isn’t home, how can the other tenant access the shut-off to prevent major water damage? If a concerning gas leak is detected and the gas can’t be shut off in-line, how can the tenant get to the main gas shut-off to prevent a potential explosion?

At our inspection this morning, we came across a shared meter situation, but the configuration was even more problematic than the examples I just gave. The gas meter and shut-off for the house behind the one we were inspecting was located in the basement of the house we were inspecting (see the image below). The meter was labeled “rear” since it serves the house located behind the home. So, two separate houses with two separate gas meters, but both meters exist inside only one of the homes. Imagine your gas meter and shut-off being located in a neighbor’s house!

Needless to say, this poses a major potential issue. If the occupant of the rear property has an emergency and needs to shut off their gas, they can only do so by accessing the basement of someone else’s home! Again, what if that homeowner is gone or doesn’t grant access to the neighbor?

We contacted the gas company to discuss this issue and were informed that the meters were intentionally set up this way. A reason wasn’t given, but it was undoubtedly done for the sake of ease, and the configuration has likely been this way for some time. And contrary to what you might assume, utility companies are often allowed to set up meters however they see fit, leaving homeowners with little or no recourse.

The buyer in this case wasn’t too concerned that his neighbor’s gas meter was located in his basement and jokingly said they’d just have to be sure to get along well after he moves in. He was very glad we made him aware, though, and said, “Had you not told me, I could have been woken up by a bang on my door at two in the morning by my neighbor wanting to run into my basement and having no clue why!”

In all likelihood, there will never be an emergency that necessitates the neighbor quickly entering the other house to shut off the gas; but it could happen, and both property owners need to be aware and have a plan just in case. So, if you’re looking to buy a home, be sure to check the utility meters. You need to know the shut-off locations anyway, and hopefully you don’t run into any strange surprises like we did this morning!

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