A commercial building inspection checklist gives you a general idea of what an inspector will check when inspecting a commercial building from the parking lot to the roof. A commercial inspection is a visual inspection of a building's major systems, as opposed to an invasive inspection of the materials or components within the building. The report provides you with the good, the bad and the budget. When reading your results, go through the checklist below to make better plans, ask the right questions and feel confident.
Key Takeaways
Inspection includes the review of the site, structure, envelope, roof, mechanical, electrical, plumbing, fire and life safety and accessibility.
Not a property condition assessment or environmental site assessment.
Depending on building size, type, age, access and scope, costs and time will vary.
Sorting findings by urgency and scheduling capital expenditures makes the report most useful.
What is a Commercial Building Inspection?
Commercial building inspection (CBI) is a non-destructive visual examination of a non-residential building and its major systems, conducted by a qualified building inspector.
The purpose is to capture the current state and identify defects and safety issues.
When people are looking for a commercial property inspection, they're asking for the same thing. The work applies to offices, retail plazas, warehouses, multi-unit buildings and industrial buildings.
An inspection is a snapshot of a single day. It does not predict future failures or show what's inside closed walls. What it does provide you with is a record of what you have decided regarding the price, repairs and planning.
Who Needs a Commercial Building Inspection?
4 groups benefit most:
Buyers and investors: An inspection is an important part of the due diligence process that will enable the buyer or investor to see what's going on before making the purchase.
Owners & property managers: One is used by owners & property managers to learn about deferred maintenance and schedule repairs before it gets costly.
Tenants signing long-term leases: Tenants who are negotiating long-term leases will sign one to determine what is effective and what is not, since the duties of maintaining the building are shared between the tenant and landlord.
Lenders: Lenders might need to have a condition report provided by a third party as part of their requirements.
Our inspection services cover these situations, but the decision to inspect is yours. If you have any questions regarding contracts, financing, or investment returns, consult a legal professional or a qualified financial adviser.
Commercial Inspection vs Building Condition Assessment vs Environmental Site Assessment
The specifics of scope will differ from provider to provider, so always make sure to verify this in writing.
| Assessment | Primary Focus | Typical Scope | Common Use |
|---|---|---|---|
| Commercial Building Inspection | Visible physical condition of building systems | Structure, envelope, roof, plumbing, life safety, site | Pre-purchase, lease, maintenance planning |
| Property Condition Assessment | Physical condition plus cost opinions and remaining useful life | Follows ASTM E2018 framework; includes document review, interviews and often capital expenditure forecasts | Lender due diligence, larger transactions, portfolio reviews |
| Phase I Environmental Site Assessment | Environmental contamination | Records review, site visits and interviews under CSA Z768; no invasive sampling | Transaction due diligence for environmental liability |
The Commercial Building Inspection Checklist
Check out this list to get an idea of what a detailed inspection entails. It is structured in a building systems approach from the site basics.
Site, Parking and Drainage
The condition of the road surface, cracks, potholes, settlement and ponding water.
Ground slope away from building, condition of catch basins.
Questions about curbs and sidewalks, retaining walls, and lighting.
Faded or missing unmarked signs which have safety and traffic flow significance.
Structure and Foundation
Signs of foundation cracking, foundation movement and water intrusion.
The condition of beams, columns, floor framing and slab.
Doors or floors that have become out of square.
Building Envelope
The sealants, flashing and masonry joints are to be included with the cladding.
The seals, glazing and hardware used in windows and doors.
Roof System
Inspectors inspect the membrane or shingles, seams, flashing, penetrations, rooftop equipment curbs and any drains. They look for signs of ice damage that indicate a roof had previously been overloaded, and ice damming in areas with heavy snow (Prairies, parts of Atlantic Canada). A company that specializes in commercial roof repair can help you decide whether to repair or replace your roof if it is near the end of its lifespan.
HVAC
Age records for rooftop units, boilers, furnaces and air handlers; Condition and maintenance records.
Alimony is not covered by insurance. Ductwork, vents and thermostats are not covered by insurance.
Corrosion, leaks or unusual noises.
Electrical
One-stop solution for customers with a range of services, subpanels, main panels and labelling.
Cables exposed, ground and overheating indications.
The exterior and interior of the house should be lighted.
Plumbing
Supply and drain lines, water heaters and fixtures
Any leaks, corrosion or staining, as well as slow drains.
Roof drains with backflow protection when evident.
Fire and Life Safety
Fire alarm panel, detectors and pull stations
Materials are available to extinguish fire.
These are associated with the National Fire Code and National Building Code, which are both published by the National Research Council Canada as model codes. Implement them at the province/territory level and review the rules governing your property.
Accessibility
Accessible parking, ramps, entrances and door hardware
Barrier-free washrooms, elevators and signage
Interior Finishes and Common Areas
Floors, ceilings and stairs
To ensure quality, water stains, or odours are identified.
Commercial Building Inspection Cost And Timeline
The cost of a commercial building inspection will differ as no two buildings are the same. The most important factors influencing price and time on site:
Size: More floor space and more units equals more to walk around and to document.
Type: Unique risks associated with each type, such as a medical office, a retail plaza and a warehouse.
Age: If the building is an older one, the wiring, plumbing and roofing issues may be more significant.
Access: Locked mechanical rooms, tenant-occupied suites and roof access.
Scope: Add-ons like thermal imaging or a moisture survey add to the work.
Small buildings can be covered in a day, while larger buildings can take several days and take time to write the report. Request a scope of work before comparing quotes to do so fairly.
How to Read a Commercial Inspection Report
From summarizing to 3 groups: findings, new questions, new information:
1. Immediate: Safety issues and water entry that need to be addressed right away.
2. Short-term: repairs within a year or two that need to be made before they deteriorate too much.
3. Long-lived components that are operating, but approaching the end of their useful life.
A Property Condition Report is usually accompanied by a Capital Expenditure Forecast of large-scale replacement items that are spread over several years. Owners can use it to estimate a reserve fund and establish a routine for commercial property maintenance. It can be used during negotiations for purchase. It is possible to use it in the negotiations on the purchase. Please compare with your accountant or financial adviser – no accounting report equals investment advice.
Red Flags in a Commercial Building Inspection
These results should be investigated before committing.
Any active roof leaks, soft spots or repeated roof patching.
The wide cracks in the foundation are growing, leaking, and are a sign of trouble.
Areas around the building where there is inadequate drainage or ponding water.
Old or overloaded electrical panels.
Rooftop units or boilers that are at the end of their useful life.
Failure of fire protection equipment, such as missing, expired or blocked equipment. Failure of fire protection equipment, including missing, expired or blocked equipment.
Mould, dampness or musty smells.
Inadequate evacuation plans.
How to Prepare for a Commercial Inspection
A little preparation will make the visit quicker, and the report will be better.
Documents: gather floor plans, past inspection or property condition reports, permits and warranties.
Maintenance records: also gather records of maintenance for HVAC, elevator, fire and roofing.
Access: place keys in place, roof hatch access, mechanical rooms and electrical panels, and explain to tenants what is going on.
List of known issues: past leaks, repairs and complaints, so that the inspector is aware and can focus on them.
Clear paths: remove stored items from panels, shutoffs and equipment.
Frequently Asked Questions
What does a commercial building inspection include?
It provides details about the site, construction, building envelope, roofing, HVAC, electrical, plumbing, fire and life safety, accessibility and common areas as outlined in the commercial building inspection checklist listed above.
How long does a commercial inspection take?
The time required for small buildings can be a few hours, and for large properties, several days, plus time to prepare the report.
What is the difference between commercial vs residential inspection?
The report is generally applicable to commercial buildings, which are larger and more complex compared to residential inspections. It contains rooftop units, sprinklers and elevators, and has the added factor of supporting business and lending decisions.
Is a property condition assessment the same as an inspection?
No. A condition review is supplemented by a capital forecast and remaining useful life in the property condition assessment.
Do tenants need a commercial building inspection?
Yes, in general, for long-term leases, as this is a means to identify systems that are working properly before taking on the maintenance burden.
What are the requirements for commercial building inspections?
Many owners review their vehicle every couple of years and perform roof and drain checks seasonally between reviews. Discuss with your inspector what will work well for you and your building.
Conclusion
The commercial building inspection checklist helps take a lengthy inspection report down to a manageable to-do list. Review each building system and prioritize any findings and plan repairs and capital expenditures accordingly.
There are standards out there such as CSA Z768 & ASTM E2018, which may be used to guide the general due diligence process, and your advisor will assist you with the legal and financial aspects.
To see how a professional review works, read about our review of commercial buildings.
