Question 1

How much does a commercial property inspection cost?

Accepted Answer

Most commercial property inspections in Southern California cost between $1,200 and $8,000. A small retail or office building usually lands at $1,200-$2,500, a mid-size multi-tenant property at $2,500-$5,000, and a large industrial or multifamily asset at $5,000 and up.

Question 2

What affects commercial inspection pricing?

Accepted Answer

Six things move a commercial inspection fee: total building area, asset type, number of tenant spaces, building age and system complexity, roof type and access, and whether the deliverable is a walk-through report or a lender-grade ASTM E2018 Property Condition Assessment.

Question 3

Who pays for a commercial property inspection, buyer or seller?

Accepted Answer

In commercial real estate the buyer almost always pays for the inspection, because the buyer orders it and owns the report. Sellers pay when they commission a pre-listing assessment, and borrowers pay for lender-required Property Condition Assessments even though the lender is the report's client.

Question 4

How much does a Phase I ESA cost?

Accepted Answer

A standard Phase I Environmental Site Assessment under ASTM E1527-21 costs $2,000-$3,500 for a typical commercial property in Southern California. Large sites, multi-parcel assemblages and properties with historical industrial use run higher, and Phase II sampling is a separate $5,000-$25,000 scope.

Question 5

How much does a commercial roof inspection cost?

Accepted Answer

A standalone commercial roof inspection generally costs $400-$1,800 depending on roof area, roof type and access. Infrared or capacitance moisture surveys add $0.03-$0.10 per square foot, and a roof evaluation is included at no extra charge inside a full Property Condition Assessment.

Question 6

How long does a commercial property inspection take?

Accepted Answer

Field time runs from about three hours on a small retail or office building to two full days on a large industrial or multifamily property. The written report follows in three to five business days, and rush delivery is available when a contingency deadline requires it.

Question 7

How soon can you schedule a commercial inspection?

Accepted Answer

We can usually be on site within two to five business days of engagement across San Diego, Orange, Los Angeles, Riverside and San Bernardino Counties. Next-day and weekend inspections are available when a contingency deadline is short.

Question 8

How long until I get the inspection report?

Accepted Answer

A standard commercial inspection report is delivered three to five business days after the site visit. A full ASTM E2018 Property Condition Assessment with cost tables takes five to ten business days, and rush delivery in 48 to 72 hours is available.

Question 9

Do tenants need to be notified before the inspection?

Accepted Answer

Yes. Occupied commercial spaces require notice under the lease, typically at least 24 hours and during reasonable business hours. Notice is the landlord's or seller's responsibility, and poor access coordination is the most common cause of diligence delay.

Question 10

Does the building need to be vacant for the inspection?

Accepted Answer

No. Commercial inspections are performed in occupied buildings every day. What matters is access: electrical panels, mechanical and riser rooms, the roof, and a representative sample of tenant spaces. Occupancy actually improves the inspection because systems are running under real load.

Question 11

What is included in a commercial property inspection?

Accepted Answer

A commercial property inspection covers the roof, structural system, building envelope, HVAC, electrical, plumbing, fire and life safety systems, vertical transportation, interiors, site improvements and accessibility observations, and delivers findings as prioritized immediate repair and capital reserve tables.

Question 12

What is the difference between a PCA and a home inspection?

Accepted Answer

A Property Condition Assessment follows ASTM E2018, evaluates commercial systems under commercial standards, and delivers opinions of probable cost plus a multi-year capital reserve table. A home inspection follows a residential standard of practice and produces a defect checklist with no cost modeling and no lender acceptance.

Question 13

What is ASTM E2018 and why does it matter?

Accepted Answer

ASTM E2018 is the consensus standard for baseline Property Condition Assessments of commercial real estate. It defines the walk-through survey, document review, interviews and the Property Condition Report, including opinions of probable cost, which is why lenders and institutional investors require reports written to it.

Question 14

What is an immediate repair versus a capital reserve item?

Accepted Answer

An immediate repair is a deficiency that requires action now or within roughly twelve months, usually for safety, code, or to prevent accelerating damage. A capital reserve item is a system nearing the end of its useful life whose replacement is projected across the analysis period, typically ten or twelve years.

Question 15

Do you inspect the roof, HVAC and electrical yourself?

Accepted Answer

Yes. Our inspectors access the roof, open electrical panels where safe, and inspect mechanical equipment directly rather than relying on contractor summaries. We bring in licensed specialty consultants only when a finding requires engineering analysis, certification or testing beyond a baseline assessment.

Question 16

What is not covered by a commercial inspection?

Accepted Answer

A baseline commercial inspection excludes destructive or invasive testing, structural and seismic calculations, code compliance certification, environmental sampling, system performance testing, and anything concealed or inaccessible on inspection day. Each of those can be added as a defined out-of-scope service.

Question 17

Can I use the inspection report to renegotiate the price?

Accepted Answer

Yes, and a properly documented Property Condition Assessment is the most effective tool for it, because opinions of probable cost turn observations into a number a seller can evaluate. Retrades succeed when they are specific, sourced and delivered inside the contingency period.

Question 18

Does my lender require a Property Condition Assessment?

Accepted Answer

Almost always, yes. SBA 504 and 7(a), CMBS, life company, agency multifamily and most bank commercial loans require an ASTM E2018 Property Condition Assessment, and they use the immediate repair table to set a closing escrow and the capital reserve table to set your ongoing replacement reserve.

Question 19

What does SBA 504 or 7(a) financing require for property inspections?

Accepted Answer

SBA 504 and 7(a) loans require an environmental investigation scaled to the property's risk under SBA SOP 50 10, and lenders customarily require a condition assessment on the collateral. Owner-user borrowers should expect a PCA-style report plus, on higher-risk sites, a full Phase I ESA.

Question 20

What is a Phase I ESA and when do I need one?

Accepted Answer

A Phase I Environmental Site Assessment is a non-invasive investigation under ASTM E1527 that identifies recognized environmental conditions through records research, historical review, site reconnaissance and interviews. You need one whenever you are buying or financing commercial property and want CERCLA landowner liability protection, and virtually every lender requires it.

Question 21

What happens if a Phase I finds a recognized environmental condition?

Accepted Answer

A recognized environmental condition means further evaluation is warranted, not that the deal is dead. The normal path is Phase II subsurface sampling to define whether contamination exists and at what concentration, after which you can renegotiate, structure an escrow or indemnity, pursue regulatory closure, or walk.

Question 22

How does inspection fit into the due diligence period?

Accepted Answer

Order the Phase I ESA on day one because it has the longest lead time, engage the condition assessment in the first week, expect reports back between day 15 and day 25, and reserve the final week for pricing repairs and negotiating. A 30-day period is workable; a 10-day period requires rush scopes.

Question 23

Can you meet a 10-day contingency deadline?

Accepted Answer

Yes for a condition assessment: we can often inspect within one to three business days and deliver a report in 48 to 72 hours. A full ASTM E1527 Phase I ESA cannot honestly be compressed into ten days, so the usual answer is a rush condition report plus a negotiated environmental extension.

Question 24

What is an SB 721 balcony inspection, and what did AB 2579 change?

Accepted Answer

California SB 721 requires owners of buildings with three or more multifamily units to have exterior elevated elements - balconies, decks, stairways and walkways more than six feet above ground - inspected by a qualified professional, then re-inspected every six years. AB 2579 extended the first-inspection deadline to January 1, 2026.

Question 25

What is a soft-story retrofit inspection?

Accepted Answer

A soft-story retrofit inspection evaluates whether a building's ground floor - typically open parking or storefront below apartments - has adequate lateral resistance, and whether it falls under a mandatory retrofit ordinance. Los Angeles Ordinance 183893 requires retrofit of covered wood-frame soft-story buildings, and several other California cities have their own programs.

Question 26

Do I need a code compliance review before a change of use?

Accepted Answer

Yes. Changing occupancy classification - warehouse to manufacturing, retail to restaurant, office to medical or assembly - triggers California Building Code requirements for exiting, fire protection, ventilation, accessibility upgrades and often parking. A pre-closing code review tells you what the change will cost before you own the building.

Question 27

What Title 24 issues show up on commercial inspections?

Accepted Answer

The recurring Title 24 findings are missing or bypassed lighting controls, HVAC equipment replaced without permits or acceptance testing, no documentation of required commissioning, non-compliant altered envelope work, and missing CalGreen paperwork on recent tenant improvements.

Question 28

Who enforces commercial building codes in San Diego County?

Accepted Answer

Each incorporated city - San Diego, Chula Vista, Carlsbad, Oceanside, Escondido and the rest - enforces the California Building Code within its own limits through its building division. The County of San Diego Planning and Development Services handles unincorporated areas, and fire authorities, the air district and state agencies enforce overlapping requirements.

Question 29

How often should a commercial roof be inspected?

Accepted Answer

Twice a year - once before the fall rain season and once in spring - plus after any major storm, rooftop equipment work, or hail. Most manufacturer warranties also require documented periodic inspection and maintenance, and neglecting it is a common reason warranty claims are denied.

Question 30

How do I know if a commercial roof needs replacement or just repair?

Accepted Answer

Repair when leaks are isolated, the membrane is otherwise sound and insulation is dry. Replace when moisture surveys show widespread saturated insulation, the membrane has lost integrity across the field, the deck is compromised, or you are past the system's service life with rising annual repair spend.

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