What has 197 Kitchens, 428 Bathrooms, and 512 Bedrooms? And Here’s Another Hint … Only 1 Roof!
No doubt, your best guess was the correct guess: it’s multi-family housing. When you list and sell a single unit in a multi-family housing building, it’s very similar to most every single family home that you’ve sold. What would it be like for you to write a contract for all 197 units in a single transaction? The obvious answer is that your commission check would be at least 197 times larger than the check for selling a single unit. Getting a commercial real estate transaction closed is a very different beast from a single family residential transaction. And commercial buyers are very different from homebuyers!
Home Inspections vs. Commercial Inspections
HomePro Inspections’ partner company Monument Commercial Building Inspections has performed over 500 commercial building inspections. Based on that experience, the biggest difference between commercial buyers and homebuyers is that where homebuyers are heavily driven by feel and emotion, commercial buyers are driven by cash flow and ROI. It’s all just math. In a commercial real estate transaction, the due diligence period is generally longer than a residential transaction. While it’s typically 10 days in residential, it is commonly 60 days or more for commercial. And commercial buyers are less likely to have repair requests; for them, it is most often about budgeting for build-out. Commercial buyers are typically more sophisticated than residential buyers. They are business people buying buildings for a defined business purpose. They care less about the appearance of a building and more about the performance of the building for their intended purpose. Recently, Monument Commercial Building Inspections inspected a 60,000-square foot warehouse in a challenged part of town for use as an electronics-recycling facility. It was as ugly a building as you have ever seen, and perfect for the commercial buyer.
Among the 500 commercial buildings inspected by Monument Commercial Building Inspections have been medical centers, restaurants, office parks, strip centers and dozens of other specialty use buildings. Each building and each buyer have their own special challenges. To accommodate that variance, Monument Commercial Building Inspections presents a custom and formal, written proposal for each transaction. The buyer is offered three different service options to ensure that they get exactly what they need to move comfortably to closing.
Commercial inspections are not just for building buyers. Landlords, tenants, association managers, and design-build firms have also found comfort in having an objective third-party inspection. Got questions about commercial building inspections? Contact us at 904-268-8211.