Commercial Property Inspections

1. Commercial Property Inspections Independently owned and operated

2. What We Inspect

3. What We Inspect This is a partial list: • Apartment buildings • Office buildings • Warehouses • Restaurants • Strip malls • Convenience Stores • Medical/professional

4. Services We Provide From cursory to comprehensive, we provide the information you need: • Pictures and measurements of a property • An inspection of the roof or fire suppression system • Investigative/problem-solving services • Consulting • Draw inspections • A thorough inspection that meets ASTM standards The fees and report format are adapted to the scope of work.

5. Our Clients • Investors • Brokers • Real estate attorneys • CPAs • Tenants: pre- and post-lease • Landlords • Insurance companies • Mortgage companies • Banks • Property management companies • Field service companies

6. Unsurpassed Standards NPI understands that a service business must provide great customer service: • Easy to contact • Inspections scheduled promptly • Clear, concise inspection report that contains proper photo documentation • Reports delivered in timely manner • We answer questions before, during and after the inspection

7. Due Diligence Tenants who require three-phase wiring: • Make sure it’s available before signing a lease

8. Due Diligence Grass doesn’t just die: • This is near a gas station • This would call for a Phase I or Phase II Environmental Survey

9. Pre-purchase Inspections • Siding can look good from afar • Closer examination isalways warranted

10. Pre-purchase Inspections Damaged stucco: • Difficult to get to • Difficult to repair • Can’t be ignored

11. Pre-purchase Inspections • Masonry wall supports the roof, etc. • Damage to this wall could affect structural integrity of the building

12. Pre-purchase Inspections • Note gap between the door and door frame • Uneven ceiling grid • If a building shows this, foundation could have settled or wall has “racked”

13. Pre-purchase Inspections • Three-story structure with small overhangs • Efflorescence due to rain water running down side of building • Salts leached from brick • At this time, mostly a cosmetic issue

14. Pre-purchase Inspections Photos help out-of-state investors better understand the age and condition of the equipment they are buying.

15. Pre-purchase Inspections • Older boiler in good working condition • However, supplies are wrapped in asbestos

16. Pre-purchase Inspections • The flue has an obvious hole in it • This is a serious risk to all building occupants

17. Pre-purchase Inspections • Electrical service is too small for light industrial operation • Cabinet adds to thecosmetic appeal • Should be open access around top, front and sides to dissipate heat and allow quick access in case of emergency

18. Pre-purchase Inspections • Dampness has rusted this electrical panel and breakers • It is now unsafe

19. Pre-purchase Inspections • Unacceptable electrical ground • Each ground requires its own connection • Ground rod is too small and too shallow to accommodate the potential load

20. Pre-purchase Inspections • Handrails are required in commercial buildings

21. Pre-purchase Inspections • What type of business currently occupies this building? • A restaurant? • A clothing store? • An investor must consider what is there now and their plans for the building

22. Insurance: Loss Control • Part of the fire suppression system • Fire marshal can issue citations for obstructing access

23. Energy Evaluations and Recommendations • Building owner installed photovoltaic (solar cell) panels • Saved nothing on electric bills because the panels were shaded by large trees

24. Energy Evaluations and Recommendations • “Green roofs” can be anything from sod to potted plants • Great care is used in designing them

25. Energy Evaluations and Recommendations • Retrofitted energy- efficient light fixture: • Qualify for certain tax credits • Energy savings

26. Draw Inspections • Bank verified percentage of completion before approving the builder’s draw request

27. Water Intrusion: Investigative • Building interior was wet after rain: • Shrubbery and negative grading were culprits • Easy tenant fix

28. Water Intrusion: Investigative • Unoccupied buildings need periodic inspection • Neglected roof leak led to far greater damage (see next slide)

29. Water Intrusion: Investigative • Metal decking, metal trusses, etc., are excessively rusted • Cost of repair could exceed the economic value of the building

30. Maintenance: Budgeting • Out-of-state landlord needed photos as part of the building’s long-term resurfacing plans

31. Tenants and Easement Rights • Cell tower operator wanted verification of no parking or dumpsters in front of fence

32. Commercial Mechanical Computer rooms: • Large and small businesses should carefully design and monitor their computer rooms

33. Commercial Mechanical Computer rooms: • Need uninterrupted electrical, cooling, surge protection, etc. • Each individual computer within the office should also have surge protection

34. Commercial Mechanical Monitoring temperature and humidity within a computer room: • Some monitors alert designated people if conditions are outside the norm

35. Windstorm Inspection • Owner and insurance company surprised at extent of damage

36. Commercial HVAC Inspections • Science behind chillers is not complicated • However, the inspection of the equipment is complicated

37. Commercial HVAC Inspections • Cooling towers can be placed on the roof or on the ground; however …

38. Commercial HVAC Inspections The closer the unit is to dirt, debris, falling leaves, grass clippings, etc.: • The more maintenance it requires • The less efficient it is

39. HVAC Problem-solving Units located too close together: • Are less efficient • Run longer • Use more electricity

40. Commercial Electrical Inspections Commercial enterprises can have numerous electrical panels: • Should be periodically inspected using Infrared thermometers, Infrared cameras or other tools for this purpose

41. Electrical Problem-solving • Control wiring is a specialized field • Most electricians are not qualified to do it • One tiny mistake can take many hours to find and correct

42. Electrical Problem-solving • Property had power the day before • Result of a lightning strike

43. Mechanical Problem-solving • Roof of a restaurant • Dissipating hot greasy air next to an air conditioner that is also dissipating hot air does not work well

44. Mechanical Problem-solving • Satellite signal lost • Wasn’t permanently or professionally installed

45. Specialized Inspections • Synthetic stucco can be difficult to repair • To the untrained eye this looks OK but is water entering the building?

46. Roof Inspections When this property management company has an unhappy tenant: • They hire experts to locate roof leaks

47. Roof Consultation Roof-mounted HVAC units: • Can produce thousands of gallons of condensate a day • Can cause excessive wear to the roof covering • Best to divert the water off the roof

48. Mechanical Consultation • Control panels such as this can be used for security systems, etc. • This one is intentionally hard to locate because it’s placed above the ceiling and out of sight

49. Interior Consultation Why did a breaker trip? • Office had one 20-amp circuit • Computer tower, monitor, printer, CD player and small lamp • Too much will lead to nuisance tripping

50. Interior Consultation • A roof leak led to mold • It only takes moisture and 48 hours for mold to grow