Cost & fees
What affects commercial inspection pricing?
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.
All FAQ / Cost & fees
1. Building area
Area is the single biggest driver because it sets time on site. A 6,000 square foot retail building is a half-day walk. A 120,000 square foot distribution building with two dock banks, a sprinkler riser room and a 100,000 square foot roof plane is a full day with a second inspector.
2. Asset type
Asset type determines how many systems exist. Industrial buildings are large but mechanically simple. Medical office is small but dense: dedicated HVAC zones, medical gas, emergency power, and specialty exhaust. Multifamily requires unit sampling, which means access coordination and interior time in every building. Hospitality and restaurant space adds grease exhaust, walk-in refrigeration and heavy makeup air.
3. Number of tenant spaces
Each tenant space is a separate access appointment, a separate electrical panel, and often a separate rooftop unit. A 20,000 square foot single-tenant building costs materially less to inspect than a 20,000 square foot center with twelve suites.
4. Age and deferred maintenance
A 1978 building carries original electrical distribution, possible aluminum branch wiring, likely asbestos-containing materials, and a roof on its third recover. Documenting those conditions properly, with remaining-life estimates a lender will accept, takes longer than a 2016 building under warranty.
5. Roof type and access
A single-ply membrane with interior hatch access is straightforward. A steep-slope tile roof, a five-plane built-up roof with three different generations of patching, or a roof that requires a lift or drone flight adds cost. We use drone documentation on roofs where walking is unsafe or would void a warranty.
6. Report standard
This is where quotes diverge most. A general condition report is a summary of observations. An ASTM E2018 Property Condition Assessment is a defined scope with a Property Condition Report, opinions of probable cost for immediate repairs, and a capital reserve table over an analysis period the lender specifies, usually ten or twelve years. The second takes substantially more analysis time and is what a lender or an investment committee requires.
What does not change the price
We do not price by the transaction value, and we do not price differently because a report is likely to be used in a price renegotiation. The fee reflects the work.
Related questions
People also ask
How much does a commercial property inspection cost?
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.
What is included in a commercial property inspection?
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.
Does my lender require a Property Condition Assessment?
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.
How long does a commercial property inspection take?
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.
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