Website: http://www.westinspect.us
Email: james@westinspect.us
Phone: (719) 568-5854
Inspector: James Eubank
InterNACHI 04101795

 

Basic Commercial Inspection
Sample Report
Client(s): (removed)
Property address: Colorado
Inspection date: 6/4/2012
This report published on Wednesday, November 28, 2012 9:56:39 AM MST

Prepared for:
(removed)

Subject Property:
(removed)

Submitted June 5, 2012,
by Field Observer and PCR Reviewer:
(signature removed)

 
How to Read this Report
This report is organized by the property's functional areas.  Within each functional area, descriptive information is listed first and is shown in bold type.  Items of concern follow descriptive information.

Click here for a glossary of building construction terms. Contact your inspector if there are terms that you do not understand, or visit the glossary of construction terms at http://www.reporthost.com/glossary.asp

Table of Contents
Purpose and Scope
General Information
Site
Structural Frame and Building Envelope
Roof
Electric Service
Plumbing
Water Heaters
HVAC/Heating and Cooling
Tenant Units
Mechanical room
Additional Considerations
Document Review and Interviews
Qualifications
Limiting Conditions
Exhibits
Definitions
 
Purpose and Scope Return to table of contents
1)   The purpose of the Basic Commercial Inspection is to determine the current condition of the improvements located on a parcel of commercial real estate, by performing a walk-through survey and conducting research. The goal is to identify and communicate physical deficiencies to the user.

The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property's material systems, components, or equipment as observed during the field observer's walk-through survey.
2)   The scope of service for this Basic Commercial Inspection includes the following:
3)   The Basic Commercial Inspection was conducted according to International Standards of Practice for Inspecting Commercial Properties. The inspection, the Property Condition Report, and its uses are strictly limited to the scope as described herein.

The inspector is a Certified Professional Inspector # NACHI04101795, who works independently of any real estate broker, Realtor association, lender, investor, buyer, seller, appraiser, contractor, or other real-estate related business. The inspector does not modify or omit information in order to influence any person or company. The inspection is in no way intended to be a warranty or guarantee, express or implied, regarding the future use or operability of the building or its components.
 
General Information Return to table of contents
Report Number: (removed)
Type of Building: Retail Commercial
Present During Inspection: Tenants, Customers
Occupied: Yes
Weather Conditions: Partly cloudy
Temperature: Warm
Ground Condition: Dry
Front of Structure Faces: South
Foundation Type: Slab on grade
The following items are excluded from this inspection: Irrigation/sprinkler operation
4)   The subject property is approximately 10700 square feet (building) and 50094 square feet (land) located in (removed).

The building is a neighborhood shopping center ("strip mall") which functions as part of a larger shopping area. The building is subdivided into five tenant areas. The largest tenant area, unit 100, comprises over 50% of the building, and the remainder of the building is equally divided among four other tenants. All four sides of the building have asphalt paving. South and east sides are public parking and customer/pedestrian access. North side is tenant parking and access, which may not be within this subject property. West side is a driveway to the north. The exterior of the building is a steel frame construction with concrete block and glass storefronts. The interior of the building includes cement floor, metal and drywall walls, and suspended (dropped) ceilings. Each tenant area has specific finishings depending on its intended use.
 
Site Return to table of contents
Topography: Essentially flat on subject property. Significant slopes on west and south sides outside property boundary. Located outside 500-year floodplain, in Zone X. Elevation 6906 feet.
5)   Access and egress to the property is through public roadways. Primary access is from an east-west roadway located directly south of the subject property. A driveway on the west of the property provides access to the north tenant parking area. From the east, pedestrian access is from the adjacent shopping area and parking areas.
6)   Parking lot was comprised of asphalt in average condition. No significant potholes or trip hazards were noted. Asphalt parking will need regular maintenance, including re-surfacing within 3 to 5 years.
7)   A large retaining wall was located west and northwest of the subject property. This retaining wall is not considered to be a part of the subject property. A city water storage tank was located on the hill above this retaining wall. Recommend occasional monitoring of this retaining wall, to look for evidence of movement, deterioration or water seepage. If such evidence is found, then recommend notifying (removed). See photo 12    See photo 13    See photo 30    
8)   A small trash receptacle building was also located on the property. See photo 7    
9)   South and southwest borders of the property were landscaped and irrigation (sprinkler) was installed. Sprinkler was not operated during this inspection. Weeds were growing in landscaped areas. Recommend a regular maintenance plan to keep weeds under control.
10)   Asphalt area on the north side of the building was essentially level, with no definite drainage pattern noted. During times of heavy rain or snowmelt, water will tend to pond on this surface, and this ponding can create hazardous conditions at the north exit doors. Tenants confirmed that water sometimes runs under the north doors during heavy rain, and that sheets of ice form outside the doors in winter. These are safety hazard conditions. It is important to direct water away from the north exit doorways. This may be accomplished in at least two ways. Recommend constructing an awning or overhang over each north doorway, of adequate size and strength to protect from heavy rain and snow. Recommend installing downspout extensions on each downspout, to direct water at least 8 feet away from the building. If water splashes out of the open-design downspouts, then downspout fronts can be closed in. Recommend evaluation by a qualified licensed contractor to determine how rain and snowmelt can be diverted around the west end of the building instead of ponding on the north side.
 
Structural Frame and Building Envelope Return to table of contents
Foundation Material: Concrete (not observed)
Wall Structure: Steel frame
11)   Six downspouts were located on the north side of the building. Only one downspout had an extension. One of the downspouts was damaged. All tenants interviewed stated that rain water puddles around the north exit doors, and that sheets of ice form there in the winter. This will allow water intrusion to the foundation and under the north exit doors. Only one downspout had an extension. Recommend installing extensions on all downspouts, to move water at least 10 feet away from the building. Recommend repairing damaged downspout. See photo 5    See photo 6    See photo 8    See photo 10    
12)   Minor surface parging was noted near the southwest corner of the building. This indicates that water has seeped below the stucco surface at this point. Recommend repair if desired, and recommend occasional monitoring to make sure this corner does not deteriorate further. See photo 3    
13)   Structural frame was found to be in good condition at the time of this inspection. Attached photos show examples of structural frame. See photo 36    See photo 47    See photo 54    
14)   Attached photos show building exteriors (elevations) from north, west and east sides. See photo 59    See photo 60    See photo 61    
15)   A space of about 8 to 10 inches was found between the northeast wall of this property and the south wall of the adjacent property. This space naturally catches some debris, and perhaps some rain and snow. Since this space is so narrow, it should not collect significant amounts of rain or snow, except in extreme conditions. If such an extreme weather situation occurs, then it will be very slow for the rain or snowmelt to dissipate from this small area. See photo 14    See photo 15    
 
Roof Return to table of contents
Roof Inspection Method: Traversed
Roof Covering: Metal, Concrete tile (cupolas)
Roof Ventilation: Adequate
16)   Metal roof was in overall good condition at the time of the inspection. Random seams had been appropriately resealed. Resealing was specifically noted on the south sides of three rooftop HVAC units. Apparently these locations had leaked in the past. Recommend occasional monitoring to make sure roof seams are not leaking. Concrete tiles on cupolas were in good condition at the time of the inspection. See photo 16    See photo 17    See photo 18    See photo 20    See photo 23    See photo 24    See photo 26    
17)   A recessed metal gutter ran from east to west along the north edge of the roof, with six downspouts attached. This gutter was not functioning properly. The gutter did not have adequate slope and was clogged in at least two locations. The gutter had ongoing leaking that was apparent in the tenant space below. Recommend evaluation and repair by a qualified licensed contractor. Repairs may include replacement of entire gutter or lining entire gutter to prevent leaking. Contractor should also evaluate slope of gutter to prevent future clogging. Also see Tenant Units section below. See photo 27    
18)   Cupolas had a small separate gutter/downspout system that was working properly at the time of this inspection. Cupolas also had a flexible wrap installed at their bases, apparently to prevent water intrusion at their bases. It could not be determined if the flexible wraps were effective. Recommend occasional monitoring to make sure water intrusion has been controlled at the bases of the cupolas. See photo 19    
 
Electric Service Return to table of contents
Primary Service Type: Underground
Location of Main Disconnect: Separate disconnects for each unit, on north exterior of building
19)   The exterior panel for unit 100 was accessible and was found to be in good condition. The exterior panels for all other units were locked and/or inaccessible and could not be inspected. Based on the accessible panels, both exterior and interior, no specific concerns were found with the electrical system. Amperage could not be determined due to locked exterior main panel. Tenants reported no problems with overall electrical service. See photo 1    See photo 9    See photo 11    See photo 35    See photo 57    
20)   Tenant in unit 101 stated that they have had to replace all of the starters in the fluorescent tube fixtures (ceiling lights). This may simply be due to age of fixtures. Recommend checking all fluorescent fixtures to make sure they are working.
 
Plumbing Return to table of contents
Location of Main Water Shutoff Valve: In mechanical room, northwest interior of unit 100
Location of Main Water Meter: Not found
Location of Main Fuel Shutoff: Gas meters on west side of building
21)   No concerns were found with plumbing system. No concerns were found with gas supply system. See photo 4    
 
Water Heaters Return to table of contents
Energy Source: Electric
Capacity: 6 gallons
Manufacturer: Rheem
Model: Rheemglas Fury
22)   Each unit had a separate 6-gallon water heater. This is a small but typical configuration for retail tenant units that are not food service. Tenants stated that hot water supply was adequate for their needs. Recommend occasionally asking tenants if their hot water supply is adequate. See photo 44    
 
HVAC/Heating and Cooling Return to table of contents
Primary Heating System Energy Source: Natural gas
Distribution System: Flexible ducts
23)   Four HVAC units on west half of roof: Rheem Model RKKA-A036CK12E, manufactured 2002, 97000 BTU thermal efficiency. Two HVAC units on east half of roof: Rheem/Ruud Model RKKB-A090CL22E, manufactured 2002, 182250 BTU thermal efficiency. HVAC units were in overall good condition at the time of the inspection. See photo 21    See photo 22    See photo 25    
24)   Two additional condenser units were located on the roof in the area above unit 100. The tenant in unit 100 stated that these condenser units were for his walk-in cooler and that he maintains these condenser units. See photo 28    See photo 29    
 
Tenant Units Return to table of contents
25)   Significant water staining was found in ceiling tiles in unit 100, unit 104, and in the mechanical room. An area of apparent mold was also found at the ceiling in unit 100. Wall surface was damaged in two locations in unit 100. The recessed gutter system was directly above the stained areas, and at least one active leak was found during inspection. Water stains were noted below the gutter in the space above the suspended ceiling. If left unrepaired, the ongoing leaking will continue to damage the ceiling and adjacent north wall. Recommend repairs as described in Roof section above. Recommend replacing all damaged or stained ceiling tiles. Recommend wall repairs as needed. See photo 34    See photo 39    See photo 40    See photo 41    See photo 42    See photo 43    See photo 49    See photo 50    See photo 51    See photo 52    See photo 53    See photo 55    See photo 56    See photo 58    
26)   Space above the suspended ceiling was used for ductwork, electrical supply, communications, insulation, water heaters, and dead air space. See photo 45    See photo 46    See photo 48    
 
Mechanical room Return to table of contents
27)   Mechanical room for the entire building was located in the northwest part of unit 100. Mechanical room contained standpipe for fire suppression, water shutoff valve, various communication panels, plus interior electrical panel for unit 100. All were in operable condition at the time of inspection. See photo 31    See photo 32    See photo 33    
28)   The fire zone control panel was not located within the mechanical room, but at the southwest corner of unit 100. The attached diagram for the panel was incomplete, and it could not be determined if this panel controlled zones for the whole building or just for unit 100. Recommend asking seller about this panel. See photo 37    See photo 38    
 
Additional Considerations Return to table of contents
29)   A complete fire safety inspection is beyond the scope of the Property Condition Assessment. Upon the buyer's possession of the building, recommend contacting the Fire Department and requesting an on-site fire safety inspection. The fire safety inspector will make specific recommendations based on the building's intended use.
30)   Although the subject property was in overall good structural condition, some systems showed a lack of recent maintenance. Ongoing preventative maintenance is a key to maintaining the property's value and its usefulness for the client. Recommend establishing a written Property Maintenance Plan. This plan should include all major systems of the building, such as roof, foundation, electrical, plumbing, HVAC. All public areas of the building, including offices and restrooms, should be included in the plan. Fire safety and other possible safety hazards need to be addressed. It is important to include exterior areas in the Property Maintenance Plan, so that issues of erosion, storm drainage, weed control, gutters, parking, and access/egress are addressed consistently. Depending on the client's requirements, property maintenance may be performed by company employees, or may be contracted to a professional maintenance service company.
 
Document Review and Interviews Return to table of contents
31)   The following documents were reviewed in order to augment the walk-through survey and to assist the consultant's understanding of the subject property:The consultant is not required to independently verify the information provided and may rely on information provided to the extent that the information appears reasonable to the consultant. The items on this list were provided by the agencies as listed, and no concerns or physical deficiencies were noted in these items.

Review indicates that all inspections were passed or finalized. There is no indication of any outstanding permits. In the event of any future plumbing, electrical, mechanical or building construction, new permit(s) will be required.

Certificate(s) of Occupancy were not found for this property. Recommend checking with (removed) to determine if Certificate(s) of Occupancy are needed.
32)   The following persons were interviewed to augment the walk-through survey and to assist the consultant's understanding of the subject property:
33)   The following documents were requested, but not received in time for the Property Condition Report. Suggest obtaining this information directly from the seller or seller's agent:
 
Qualifications Return to table of contents
34)   Both Field Observation and PCR review were performed by the consultant James Eubank. Mr. Eubank is owner of Westinspect. He has provided residential inspections in Colorado since 2002. And since 2005 he has provided commercial inspections in USA, Mexico, Caribbean, Asia and Pacific. Mr. Eubank is a Certified Commercial Inspector, trained at ITA Denver, CO. His certification number is NACHI04101795. Prior to performing home and commercial inspections, Mr. Eubank worked in construction. He is a graduate of the University of Arkansas, with a B.A. in science education, emphasizing geological and environmental sciences.
 
Limiting Conditions Return to table of contents
35)   The Basic Commercial Inspection and the Property Condition Report are performed and prepared for the use of (removed). Consultant accepts no responsibility for use or misinterpretation by third parties. This assessment and report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitabiity, or suitability of the commercial property or its components. Consultant assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. Consultant does not perform engineering, architectural, plumbing, electrical, or any other job function requiring an occupational license in the jurisdiction where the assessment is taking place.

Inspection standard contains certain limitations, exceptions, and exclusions. Examples include, but are not limited to:
 
Exhibits Return to table of contents
36)   The following Exhibits are attached to the Property Condition Report by reference to the online versions:
Files are viewable or downloadable at (removed).
 
Definitions Return to table of contents
37)   de minimus condition - a description of deficiencies that are not material to the condition of the property or do not require significant costs to correct, but nevertheless may be noted in the PCR, in the opinion of the field observer or PCR reviewer.

deferred maintenance - physical deficiencies that could have been remedied with routine maintenance, normal operating maintenance, etc., excluding de minimus conditions that generally do not present a material physical deficiency to the subject property.

due diligence - the process of conducting a walk-through survey and appropriate inquiries into the physical condition of a commercial real estate's improvements, usually in connection with a commercial real estate transaction. The degree and type of such survey and inquiry may vary for different properties, different user purposes, and time alloted.

physical deficiency - conspicuous defects or significant deferred maintenance or a subject property's material systems, components, or equipment as observed as a result of the field observer's walk-through survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimus conditions that generally do not constitute a material physical deficiency of the subject property.
 

Photo 1  
electric panel, unit 101
Photo 2  
(removed)

Photo 3  
minor surface parging near southwest corner
Photo 4  
gas meters

Photo 5  
downspouts
Photo 6  
downspout extension near trash enclosure

Photo 7  
trash enclosure
Photo 8  
damaged downspout

Photo 9  
electric meters and panels
Photo 10  
downspout extension, detached

Photo 11  
exterior electric panel for unit 100
Photo 12  
retaining wall northwest of property

Photo 13  
retaining wall west of property
Photo 14  
space between walls of this property (right) and adjacent property (left)

Photo 15  
space between walls of this property (right) and adjacent property (left)
Photo 16  
view of roof

Photo 17  
view of roof
Photo 18  
example of roof seam with sealant

Photo 19  
cupola structure, with downspout and flexible wrap at base
Photo 20  
view of cupola roof

Photo 21  
Rheem rooftop HVAC unit
Photo 22  
Rheem HVAC specifications

Photo 23  
sealant at base of rooftop HVAC
Photo 24  
sealant at base of rooftop HVAC

Photo 25  
Rheem/Ruud rooftop HVAC unit
Photo 26  
sealant at base of rooftop HVAC

Photo 27  
clogged gutter
Photo 28  
separate condensing unit, maintained by unit 100 tenant

Photo 29  
separate condensing unit, maintained by unit 100 tenant
Photo 30  
city water storage tank, northwest of property

Photo 31  
fire control standpipe in mechanical room
Photo 32  
main water shutoff valve

Photo 33  
telephone/communication in mechanical room
Photo 34  
significant water staining and ceiling damage in mechanical room

Photo 35  
electric panel in mechanical room
Photo 36  
example of steel structure

Photo 37  
fire suppression panel, southwest interior corner of unit 100
Photo 38  
zone schedule for fire suppression

Photo 39  
example of water stain in ceiling
Photo 40  
significant water staining along north edge of unit 100 ceiling

Photo 41  
significant water staining along north edge of unit 100 ceiling
Photo 42  
apparent mold at north edge of unit 100 ceiling

Photo 43  
example of water staining in ceiling
Photo 44  
example of water heater

Photo 45  
mechanical structure above suspended ceiling
Photo 46  
mechanical structure above suspended ceiling

Photo 47  
steel structure above suspended ceiling
Photo 48  
wall insulation above suspended ceiling

Photo 49  
steel and gutter structure above suspended ceiling
Photo 50  
gutter structure above suspended ceiling

Photo 51  
water staining and wall damage in unit 100
Photo 52  
wall damage in unit 100

Photo 53  
wall damage in unit 100
Photo 54  
steel structure above suspended ceiling

Photo 55  
gutter structure above suspended ceiling
Photo 56  
gutter with active leak

Photo 57  
electric panel in unit 103
Photo 58  
water stain in ceiling of unit 104

Photo 59  
east elevation
Photo 60  
north elevation

Photo 61  
west elevation
Photo 62  

Photo 63  
Photo 64  

Photo 65  
Photo 66  

Photo 67  
Photo 68  

Photo 69  
Photo 70  

Photo 71  
Photo 72  
 
Copyright © 2012 Westinspect. This Property Condition Report is the exclusive property of this Inspection company. Use of this Report by any unauthorized persons is prohibited.

This Report has been prepared according to International Standards of Practice for Inspecting Commercial Properties.

POLICIES: Privacy Policy, Payment Policy, Recourse Policy and Business Principles can all be found at the Policies page of website www.westinspect.us.

SNAPSHOT: Your Property Condition Assessment is like a "snapshot" of the property's condition on a specific date. Those conditions will change, so you need to keep inspecting your property during the time you own it:
Verify that any air conditioning condensate water is draining properly to the exterior after operation on a hot day.
Verify that the gutters and downspouts are performing during a hard rain.
Verify that no water is ponding on the property after a hard rain.
Verify that no dimming or flickering of lights occurs.
Verify that no repeated resetting of any circuit breakers is necessary.
Verify that the quantity of the hot water supply is adequate.
Verify that the performance of the HVAC systems are adequate.
Verify that no leaking is present in the ceiling area during a hard rain.
And inspect any of the other concerns that were mentioned in this Report.

EXPIRATION DATE: This Property Condition Report describes the property's condition on the days of the Property Condition Assessment. Conditions can change daily due to ongoing use, deferred maintenance, and environmental circumstances. Your inspection follow-up service expires 60 days after the inspection date. If you do not purchase this property, then this Property Condition Report expires on the date that the purchase contract expires or is canceled. If you like, you may allow others to read this Report as a part of your informed decision-making. You are not authorized to pass this Report on to other potential buyers, or to other real estate agents.

SDG