Due Diligence and Site Assessment

Property Inspection

A general physical examination of a property's condition covering major building systems, structure, and site features — the broad-brush pass before specialized assessments dig into specific systems.

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Definition

A property inspection is a general physical examination of a property's condition, typically covering major building systems, structure, and site features, conducted before finalizing a lease or purchase. While a general property inspection provides a broad overview, specific concerns identified often warrant more specialized follow-up assessments, such as a dedicated structural inspection or roof inspection.

What a general property inspection typically covers

System/AreaWhat's assessed
StructureGeneral condition of walls, foundation, framing
RoofVisible condition, obvious signs of leaks or wear
HVAC/electricalBasic functional assessment
Site/exteriorParking lot, yard, dock equipment condition

What to watch for before committing

Inspector qualifications for industrial property

Confirm your inspector has specific experience with industrial and warehouse properties, not just general commercial or residential inspection background.

Scope limitations understanding

Understand what a general property inspection does and doesn't cover, since specialized systems may need separate, more detailed assessment.

Follow-up specialized inspection triggers

Identify which findings warrant follow-up specialized inspections, such as structural, roof, or HVAC-specific assessment.

Documentation and photo evidence

Ensure the inspection produces thorough written documentation and photo evidence you can reference later.

Access to all relevant areas

Confirm the inspector has access to all relevant areas, including roof, mechanical rooms, and any areas not immediately visible.

Timing relative to contingency deadlines

Schedule the inspection with adequate time to review findings and negotiate before any contractual contingency deadlines.

When you need to know this

  • Evaluating a candidate property before committing — obtaining a general condition assessment as part of due diligence
  • Identifying areas needing specialized follow-up — determining which specific systems warrant deeper investigation
  • Negotiating lease or purchase terms — using inspection findings as leverage for price or corrective action
  • Establishing a baseline before occupancy — documenting condition for future reference and comparison

Frequently asked questions

What is a property inspection? +
A property inspection is a general physical examination of a property's condition, typically covering major building systems, structure, and site features, conducted before finalizing a lease or purchase.
Is a general property inspection enough for industrial real estate? +
Often not sufficient alone — specific concerns identified during a general inspection frequently warrant more specialized follow-up assessments, such as structural, roof, or HVAC-specific inspections.
Who should conduct a property inspection? +
Engage an inspector with specific experience in industrial and warehouse properties, rather than one with only general commercial or residential inspection background, given the specialized systems involved.
What should I do with property inspection findings? +
Use significant findings as negotiation leverage for price or requiring corrective action, and identify which specific issues warrant more specialized follow-up assessment before finalizing your decision.

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