The Truth About Commercial Property Inspections


When looking at a new commercial or retail investment property first time, it's wise to have some form of checklist and system which assists you in the process. We have created this checklist to guide you to the right path.

When looking at a new commercial or retail investment property first time, it's wise to have some form of checklist and system which assists you in the process. We have created this checklist to guide you to the right path.

It's almost like doing your own due diligence while inspecting a property. Don't be influenced by what you read and investigate any questions. Any information that someone tells you about the property should be studied.

A keen eye for property detail and a diligent record keeping process as you walk around is the only way to inspect investment property faisal hills islamabad. It's amazing how often these records need to be reexamined later to determine if the property is worth revaluation.

The following are suggested as some of the basic aspects to consider in your property inspection process.

  1. A copy of title records is crucial for your inspection prior to you even start. Also, get a copy the survey records , as also any leases or licenses. Also, look for any unregistered rights that are not listed on the title to the property. If you are unsure, consult a good property solicitor to assist.
  2. Make sure you know the precise location of your property boundaries. Also, look out for survey pegs applicable to the plan of survey. If in doubt seek an expert surveyor.
  3. There could be easements, encumbrances and other registered interest within the title to the property that have to be fully investigated. These interests can impact the value that the property is sold for when it is sold, and may also affect the way in which lease occupancy is conducted. If any registered interest exists on the property title, a duplicate of the relevant paperwork is the initial step of the investigation which should then be followed by inquiries.
  4. The property could also be affected by the records from local councils. Is there anything that has been ordered or is still in the process of being ordered regarding the property? If so is this a cause for concern for the potential investor.
  5. The zoning for a property could influence the value of the property. This can include changes to the precinct or zoning activities. As part of this process, it is wise to include neighbouring properties and examine them to make sure that they are not having any impact on the property in question.
  6. Copies of the town plan will help you understand current planning issues. A discussion with the local office of planning or planning officer can help get you on the right path and explain any current issues or concerns that might be arising. It's good to keep a log of these discussions as well as any findings.
  7. If you have a copy of the lease documents for neighbouring properties, you should locate it and read it. It is important to be aware of what neighbouring tenants are doing and for how they are staying for.
  8. The local topography and plans for the immediate region will allow you to understand the change in the soil and the impact of any slopes and natural drainage. Check the locations of any water courses and flood plains. Learn about the history of any flooding that has occurred in the area.
  9. The power supply to and across the area should be considered. Every industrial tenant needs to be aware of how electricity is delivered to the property. Find out if there are any easements or encumbrances are at the property's boundary to supply electricity.
  10. Facilities and services for the investment property will influence the future operations and the interest of the business community. To answer the question here is the nature of these services and amenities and if they are maintained.
  11. Check for changes in roads or transport corridors that could affect the property or region. Road changes can dramatically change the way that the property is utilized.
  12. Take into consideration the impact that public transport on the function of your property. Businesses require frequent and reliable public transport to get their employees to work.
  13. Look at the demographics of business and community of the area. The trends in growth for the last 5 to 10 years can help you to understand the potential of the property.
  14. Other property valuers in the area can be a valuable source of market data. They will usually be able to tell you the history of the region and current business climate. Market intelligence comprises information on rental levels as well as incentives and the cost of sales per square metre. These factors have an impact on the value of the property to property investors.
  15. Take a look around to see what other properties for sale within the area. Get information on the properties as well as prices they are being offered at. Properties that have been on the market for a while will provide you with an idea of how reasonable the local market prices are as well as the business sentiment is at the time.
  16. Look around the area to determine how many homes are currently vacant. With reference to each particular vacant property, you should know the details of the rental being sought and the time that the property has been for sale. These rentals will be relevant and reasonable for the market.
  17. A study of the demand and supply of vacant space according to the type of property is essential for the region. You want to find out the amount of space that will be available in the future, and the number of spaces currently available for renters.
  18. Be aware of any developments in the property market which could be at the beginning stages of planning and approval. The key question here is what impact these properties may affect your property.
  19. The history of the place is always valuable to you. For industrial, commercial and retail investment properties, the history that you're after is the past five years. It's amazing how much information you can gather from local property sales and trends in rental. Because retail and commercial investment properties operate on a cycles of fall and rise, it is the history that will help you gain an understanding of what's been going on and where the future is headed.
  20. In any property research especially with more properties that are complex and massive, it's important to get the opinions of engineers and architects. What they must provide here is a comment on the strength of the structure and its future usable life. Also, you should identify ways the property can be expanded or renovated if needed.
  21. Check out the tenancy schedules of other properties in the vicinity. They are not common, but they can be very valuable. They will provide you with plenty of information regarding other buildings and other properties, which could impact your property sales or leasing strategies. What you do not want is a significant occupancy rate near your property in the event you want to lease it.
  22. It is possible to look through the areas of business for larger companies to learn more about their operations. This will help you determine the major business players and the major employers. Having these companies in the area is good for the region however, losing them could be a major danger for the area. This is the stability of business aspect. This should be a part of your future investment property assessment.
  23. Check out the other major tenants within the region to understand what they do. They can either stress or enhance the region based on how they conduct business and what times of the day they do it. A prime example is a transport company with vehicle access that is peak at certain time of day. This could be a challenge to other businesses in the area and how they operate.
  24. Take a walk around the precinct as well as the property, taking numerous photographs to be later examined. It's incredible how useful photographs can be for appraisals of property inspections. It's easy to sense the street's functionality and neighbouring properties strolling through it. This puts you in a better perspective for the services and amenities, and the function of all local surrounding businesses. A good tip to keep a backup of digital photos for future evidence is to conversion of important photographs to gif-type files. The format is more reliable than court documents and can't be changed.
  25. Visit the offices of local businesses, and speak with them about the way things run locally for them. Other businesses and tenants in the region will tell you a lot and put you in the middle of challenges and problems in the area.

 

The examination of investment properties for commercial use is an extremely physical procedure. In this way, you will be able to comprehend the purpose of the property before you determine its suitability for you plans price, rental, and occupancy.