Resource Info – Commercial Inspections

All of our property condition assessments use the baseline property condition assessment process as outlined in the ASTM E-2018 standards.

 

The assessment includes physical deficiencies defined as “the presence of conspicuous defects or material deferred maintenance of a subject property’s material systems, components or equipment observed during the field observer’s walk-through survey. The stands “specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc and excludes minimis conditions that generally do not present material physical deficiencies”.

 

NOTE: The ASTM standards state the following regarding deviations form the standard: “This guide also recognizes that there are varying levels of property condition assessment and due diligence that can be exercised that are both more and less comprehensive that this guide, and that may be appropriate to meet the objective of the user. Users should consider their requirements, the purpose that the PCA is to serve, and their risk tolerance level before selecting the consultant and the level of due diligence to be exercised by the consultant”. This provision allows you to specify deviations that meet your individual needs and building typ. These deviations would be mutually agreed upon and clearly stated in the engagement documents and final report. These deviation may reduce the scope of the assessment due to financial and/or time constraints or exceed the assessment standards and include dismantling and operation of readily accessible key systems like HVAC, maintenance suggestions, long term replacement schedules and cost to remedy defects with no minimum cost threshold. Our property assessment can be tailored to the individual clients requirements. Property condition assessments can include the condition, life expectancy and repair/replacement budgets for the roof systems, electrical services, common plumbing including hot water heaters, heating units, HVAC units interior/exterior walls, floors, windows and finished areas along with the grounds and surface lots adjacent to the building. When possible the report with include interviews with management and maintenance staff, providers of maintenance contracts on key equipment.

 

Whether you are a building owner, property manager, leasing agent, lender or tenant, we provide the property condition information you need for optimal decision making.

 

We provide inspection expertise for the following:

 

Property owners – maintenance inspections and property condition assessments (PCA)

Occupants- Property Net Lease Occupants (also known as Commercial Triple Net Lease) – property inspections and condition assessments (PCA)

Property Investors (or Investment Groups) – investment property inspections and condition assessments (PCA)

Realtors and Brokers – investment property inspections and condition assessments (PCA)

Engineering and Architect Firms – infrared thermal imaging services including roof scans, electrical assessments, and heat loss assessments

Construction Commissioning Agents – infrared thermal imaging services including roof scans, electrical assessments and acceptance testing, and heat loss assessments

Individual or Business Property purchasers – investment property inspections and condition assessments (PCA)

 

The bottom line is that a professional building inspection gives the client an overall understanding of the general condition of the building. This allows the client to move forward with business planning, negotiations and remodeling or renovation with a knoweldge of current systems. An inspection reduces surprises. When it comes to large real estate transactions that can be a great peace of mind. Many items identified in our comphrehensive reports are unknown to the seller which also becomes a great tool for price reduction or negotitation.

 

Our report explains in great detail what deficiencies exist in your potential investment. With numerous pictures and explainations of deficiencies or potential equipment failures you will be armed with the knowledge you require to make a successful investment.

 

After you have found the location of your investment property which is number one, two and three on most buyers lists. ( Location, Location and Location) you have to accurately know what your bottom line will be. To do this you need to know what your expenses are projected to be. Our report, if required, can outline the next five years of Capital Costs for your project. Knowing your projected costs prior to purchase can greatly help your decision and further allow a more realistic projected profit on your investment.

 

We supply Reliance Letters and Capital Expenditure projections, when required, which are required by many investment mortgage brokers.

 

Knowing this prior to hiring a company to assess your investment gives you the knowledge that you have chosen a professional company to protect your next property investment.

 

Determining what and how intensive an inspection should be is the first step in a property assessment. There is a point where the time and effort involved in obtaining information is not financially feasible. This is where experience is paramount in knowing what the inspection requirements are to be.

 

Thermal imaging is a necessity when inspecting any property. The cost or repairing or replacing roofs is an enormous cost which potential buyers want to be apprised of. Thermal imaging can find hidden leaks and air pockets which will indicate the need for samples to be taken and a more in depth review of roofing materials.

 

The change of use of a building can have a huge impact on the cost of setting up a new business in an existing building. Understanding the Ontario Building Code can help you prepare your client with the basics of structural changes that may be required. Although the city or municipality will require plans and drawings prior to issuing an occupancy permit, it is wise to educate the buyer to the potential changes that may be required.

 

Life Safety equipment is typically required to be inspected by owners of buildings on a monthly basis. May inspectors fail to note the requirement and testing of Life Safety equipment which could be required to be operating in order to obtain a building permit for the buildings new owner. The requirements of this equipment are fully detailed in the Ontario Building Code and Ontario Fire Code.

 

Fire Doors, fire separations, fire walls, sprinkler systems, fire alarms, smoke and heat activated detectors are all requirements of large buildings. Experience and knowledge of these items is paramount in protecting your client from a surprise if any of these systems are deficient or fail to operate.Repairs to these systems can be very expensive and testing and assessing them is an integral part of the assessment.

 

Once you have performed your due diligence and decided on a property you would like to invest in, there are many things that should be done. All the leases should be inspected by your lawyer to establish their length and any irregularities.

 

You should hire a Professional Inspector to evaluate the property. The bigger the building the more complicated the design. Large Buildings is an intensive course dealing with the Occupancy of Buildings; Building Fire Safety; Safety within Floor Areas; Exits; Barrier Free

Design; Structural Design; Change of Use and Renovations to name a few. As you can see from the subject titles all of these aspects of a building are important and can be very expensive to repair or upgrade.

 

There are many items that require assessment by a professinal property inspector and reviewed by your lawyer regarding existing leases. You should be fully aware of any existing “favorable clauses” prior to purchase. Checking with your local building department is also a good idea to obtain information about any previous building permits or “orders to comply” that might be outstanding.

 

We provide Phase One Assessments. If a potentially contaminating activity is identified on, in or under the property during the Phase One ESA. A Phase II ESA is made up of the following five components: planning the site investigation; conducting the site investigation; interpretation and evaluation of the information gathered; preparation of a written report; and submission of the report to the property owner/client.

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