How Much Does a Commercial Inspection Cost?
How do commercial building inspectors determine inspection prices?
Commercial inspectors have a few different methods they can use for pricing inspections. Let’s break down the most common methods for how commercial building inspectors determine inspection fees.
Percentage of Listing Price
Some inspectors go by percentage of the sale price. This format of pricing is a longstanding approach to pricing large commercial inspection projects. The inspector will charge a percentage fee out of the total the building is being sold for, then subcontract other inspectors and experts to help them with the project. This form of pricing, however, can quickly drive up costs for the client and isn’t always a good strategy for pricing all types of commercial buildings.
Flat-Fee Pricing
Some inspectors go by a flat fee based on the building type, the types of components present on the property, and the services performed. This method of pricing is becoming more unpopular and is typically not used by more sophisticated inspection companies.
Square Footage Pricing
Likely the most popular strategy is for commercial inspectors to base the inspection fee on the overall square footage of the property, or the square footage to be inspected. This is also a common method for residential home inspectors. The price per square foot can vary depending on the state and is typically congruent with the cost per square footage of the property. The trend for commercial inspections per square foot is to stick between 16 cents to 30 cents per square foot. For example, the inspection cost for a 5,000-square-foot office building would cost anywhere from $800 to $1,500.
Time-Based Pricing
The last strategy commercial inspectors use is to determine the inspection fee by figuring out how much time it will take the inspection team to complete the project. Typically, the inspector will know the value of his services and aim for an average hourly rate. For example, if the inspector decides his time is worth $100 per hour and knows the inspection will take 8 hours, the inspection fee will likely be $800. In this scenario, the inspector isn’t calculating into the fee the amount of skill required, only the time spent working on the project.
Skill-Based Pricing
Then some commercial inspectors will say that price should be determined by effort and skill. If the building requires more strategic planning, more physical labor, and additional reporting then the price should increase. Whereas a building that requires less of the inspector should cost less. For example, a multifamily property requires quite a lot of pre-planning, onsite communication with tenants and managers, and tedious report writing; however, a small convenience store is a simple project and therefore will cost less per hour than the multifamily property to inspect. This strategy is quite different than the time-based pricing strategy where the inspector focuses on time spent, which we mentioned above.
Commercial Inspector Lance Coffman
Lance is an owner at Focus Building Inspections and teaches commercial inspectors at the national level for CCPIA and InterNACHI.
5 Things to Remember When Hiring a Commercial Building Inspector
It’s normal for commercial inspectors to use a variety of pricing methods when determining the cost of a commercial building inspection, there is no such thing as one size fits all within our industry.
It’s hard to determine what the average cost of a commercial inspection ought to be because each building is different, every client is unique, and every real estate market has its traditions.
Always search for commercial inspectors who have good reputations, experience, and technical knowledge, and are fair and ethical in their practices and pricing.
Expect a formal commercial inspection proposal that clarifies what you can expect to receive for the inspection fees you pay.
Payment options vary between inspection companies; some will offer net 30 and financing, while others may require deposits and even upfront payments.
What to Expect From Focus Building Inspections
What types of commercial services do you offer?
Commercial Building Assessments
CAPITAL RESERVE FORECAST
INSURANCE: LOSS ASSESSMENT
INSURANCE: PRE-LOSS ASSESSMENT
MAINTENANCE STRATEGY PROGRAM
OPINION OF COST REPORT
PROPERTY CONDITION ASSESSMENT
TRIPLE NET LEASE ASSESSMENT
Commercial Building Inspections
ADA COMPLIANCE AND ACCESSIBILITY SURVEY
AIR QUALITY TEST
DRAW INSPECTION
MOLD TEST
ODAFF-1 REPORT
SEWER LATERAL LINE INSPECTION
How does the process of requesting commercial services work?
REQUESTING A PROPOSAL + SCHEDULING THE SERVICES
Our admin team will gather the essential information about the property and present a proposal for the services the client is requesting. If accepted, we will provide confirmation and officially schedule the project.
CONSULTATION WITH THE INSPECTOR
All work requiring site inspections will need a pre-inspection meeting; this is typically via phone call but can also occur in person if the project requires on-site evaluation before the inspection date. In this meeting, the inspector will discuss the overall work process, property details, and any relevant issues.
SITE INSPECTION
We will perform a comprehensive on-site inspection of the commercial property. The work will include identifying and inventorying qualifying component assets, taking measurements and photographs, and collecting condition assessment data.
REPORT WRITING
Once back in the office, we will begin the report preparation process. The depth and scope of the report will depend on the services performed by the inspector.
REPORT SUBMISSION & REVIEW
Once the reports are complete, we inform the client that all documents and reports are available for review on the inspection portal.
OPTIONAL FOLLOW-UP CONSULTATION
At the client's preference, the inspector can be available for a phone call to discuss and review the findings.
How much do commercial inspection and assessment services cost?
$150 TO $250 PER HOUR
Our team is among the highest qualified CCPIA and ASTM-certified commercial inspectors, focusing solely on commercial properties and serving Oklahoma, Kansas, Arkansas, and Missouri. Our owner and lead inspector teaches nationally for our elite commercial inspection organization.
The final inspection fee will depend on the scope and timeline of the inspection, the services requested, the size of the property, and the distance from our office. Submit our proposal request form for a specific price quote. If you aren’t sure about what services you need, please give us a call.
What types of buildings do you inspect and assess?
OUR SERVICES ARE SUITABLE FOR A RANGE OF BUILDING TYPES
Office Buildings
Warehouse Buildings / Storage Facilities
Industrial Buildings
Retail Buildings / Shopping Centers
Office Buildings / Office Suites
Daycares / Schools / Nursing Homes
Restaurants/ Commercial Kitchens
Multi-Family Residential Buildings
Motels / Hotels
Churches / Religious Centers
Who is your typical customer?
WE SERVE A VARIETY OF PROFESSIONALS AND ORGANIZATIONS
Commercial Realtors
Commercial Investors
Commercial Lenders
Builders / Construction Managers
Purchasers
Sellers
Building Owners / Business Owners
Tenants / Business Owners
Property Managers
Due Diligence Companies
Policies + Scope of Practice
QUALIFICATIONS & EXPERIENCE
When choosing a commercial inspector, choose a team that’s both experienced and educated. Without a professional inspection performed by a qualified commercial property inspector, a buyer may be left with overlooked defects and potentially costly repairs.
Our inspectors hold certification with an accredited commercial inspection education and training program called CCPIA (Commercial Property Inspectors Association). CCPIA is the most reputable commercial inspection training program in the United States.
We also utilize the ASTM (American Standard for Testing and Materials) Property Condition Assessment standard E-2018-15 to conduct a baseline assessment for all commercial properties we inspect.
LIABILITY & RISK
No inspection report is perfect. We assure you that we carry the highest qualifications and liability insurance to mitigate errors and omissions. No inspection is a guarantee or warranty of any kind.
SCOPE OF PRACTICE
The scope of practice, or scope of work, can vary from project to project and company to company. It is up to the client what elements of the commercial property will be inspected and to what extent. We do our best to deliver a customized inspection experience to every client.
INSPECTION AGREEMENTS
We require that every commercial inspection client agree to and sign our inspection agreement. This is standard within both residential and commercial inspection services. Included in the agreement is the scope of practice, outline of the payment policy and guarantee of payment, limitations and liabilities, procedures for submitting claims, and more.
View The Inspection Agreement ▸
THE COMMERCIAL INSPECTION REPORT
We use an intuitive report-writing software called Spectora. This software allows a client to view a report in multiple formats as well as easily share the report with contacts. Our reports include written detailed findings and explanations as well as professional image and video content.
The report delivery varies from project to project.
PAYMENT POLICY
$300 minimum deposit is due at the time of scheduling.
100% of the deposit is non-refundable if the inspection is canceled for any reason at any time.
100% of the inspection fee is due before the release of any reports.
Preferable payment methods are secure credit/debit cards or ACH transfers.
We do not offer net payment options.
We do not offer defer to closing payment options.
TRAVEL POLICY
When we travel to a commercial inspection site we charge the inspector's hourly rate for the duration of the expected travel time. Should an overnight stay be required (multiple-day project) we do calculate hotel fees and meals into the inspection cost.
Sources:
https://ccpia.org/how-to-price-a-commercial-building-inspection/#:~:text=The%20fee%20would%20be%2012%2C000,may%20be%20higher%20or%20lower.
https://icaschool.com/state-licensing/oklahoma/#:~:text=The%20average%20fee%20for%20a,our%20online%20home%20inspection%20course.