A real estate agent listing a commercial property should undertake a detailed property inspection before they give any indication of price or rent to a landlord or property owner. In only this way can they really know what the property is all about; that is what positive and negative aspects the property can create as an investment.Every property is different and for that simple reason it pays to have some form of checklist to run through when as an agent you are listing the commercial property. The focus of the inspection will change depending on whether the property is to be for sale or for lease but here are some of the key issues that you would want to know about in listing the property for sale.
Ownership of the property together with the split if any on property ownership
Decision makers for the ownership
Location detail and survey plans of the plot
Details of the improvements in the property
Details of all the leases and occupancy documents that apply to the sitting tenants
Tenant contact detail for access in further inspections
Details of rental paid at the current time and how that is documented
Vacancy factors and areas that are soon to become vacant
Details of the expenditure to run the property both today and over the last 3 years (in this way you can check the way the property has performed)
Orders and notices that may have been issued over the property and which remain outstanding
Matters relating to current negotiations in leases for further terms or amended lease situations
Details of any existing lease incentives that have been provided to tenants currently and which remain active for the future
Access arrangements for people and vehicles getting into and away from the property
Any encumbrances, liens, and interests from other properties in the area and that can impact the subject property
Services and amenities that serve the area and the property
Energy supply and energy consumption factors
Environmental factors that are current or could impact the property usage
Heritage matters that can impact the property
The list does not end here but it is a good summary of the main elements that apply in a property inspection. Any one of these items could have issues to impact the price of the property. Importantly you are finding the issues before you price and list a property.When you have the property correctly documented it makes the sale and any lease negotiation much easier. Most buyers today will undertake their own due diligence in the sale and settlement process. Make sure you find the problems before the buyer does and have all the right answers ready.