What is a Commercial Building Survey?
A Commercial Building Survey is a detailed overview of a buildings condition, which will also take into consideration and provide commentary on legal and regulatory matters, environmental issues and will commonly include a reinstatement cost assessment. A commercial building survey is normally undertaken as part of the building acquisition process (whether this be by the vendor or purchaser) or when a prospective tenant is looking to acquire the leasehold interest of a property. A commercial building survey is sometimes referred to as a technical due diligence survey.
The Commercial Building Survey will provide a detailed description of the building and the condition of the various building elements. The commercial building survey is used to assess whether a property is suitable for acquisition or occupation and will incorporate budget costs for the various recommended works.
When do you need a Commercial Building Survey?
There are numerous scenarios when a commercial building survey will be required. The most common requirement for a commercial building survey is when a party is looking to purchase or acquire an asset. This type of commercial building survey is called a pre acquisition survey. The purpose of this type of commercial building survey is to provide an overview of the condition and any legal matters on behalf of the acquiring party, which will assist with understanding whether a building is fit for purpose, and any risks that can be taken into consideration as part of the purchase.
A commercial building survey can also be completed at the point of selling a building, This type of commercial building survey is referred to as a vendor survey and is produced by the vendor to enable all interested parties to gain an understanding of the condition of the building before they make an offer.
A commercial building survey is also often undertaken on the behalf of a prospective tenant prior to leasehold acquisition. This type of commercial building survey is called a lease acquisition survey. As with the other types of commercial building surveys, this type of survey will also pick on the condition and legal matters, which will impact the occupation of a building.
Any type of commercial building survey should ideally be as completed as early as possible in the acquisition/ occupation process as this will enable all issues raised to be fully consideration and provide the instructing party with a more comprehensive understanding of the implications of the purchase and whether any revisions need to be made to the offer/lease.
