View as PDF


Phone: (719) 568-5854 · (720) 295-2452
Inspector: James Eubank
InterNACHI 04101795


Sample Basic Commercial Inspection Report

Client(s):  Sample Commercial Report
Property address:  Colorado
Inspection date:  Friday, March 28, 2014

This report published on Friday, March 28, 2014 2:07:39 PM MDT

How to Read this Report
This report is organized by the property's functional areas.  Within each functional area, descriptive information is listed first and is shown in bold type.  Items of concern follow descriptive information. Concerns are shown and sorted according to these types:
Concern typeREPAIR or REPLACERecommend repairing or replacing
Concern typeREPAIR or MAINTAINRecommend repair and/or maintenance
Concern typeMAINTAINRecommend ongoing maintenance
Concern typeEVALUATERecommend evaluation by a specialist
Concern typeMONITORRecommend monitoring in the future
Concern typeSERVICEABLEItem or component is in serviceable condition
Concern typeCOMMENTFor your information

Click here for a glossary of building construction terms.Contact your inspector If there are terms that you do not understand, or visit the glossary of construction terms at

Table of Contents
Purpose & Scope
General Information
Site, Grounds & Parking
Exterior and Foundation
Loading docks
Plumbing / Fuel Systems
Water Heater(s)
Heating, Ventilation and Air Conditioning (HVAC)
Offices/Interior Rooms
Document Review & Interviews
Additional recommendations & information

Purpose & Scope
Return to table of contents

1)   The purpose of the Basic Commercial Inspection is to determine the current condition of the improvements located on a parcel of commercial real estate, by performing a walk-through survey and conducting research. The goal is to identify and communicate physical deficiencies to the user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property's material systems, components, or equipment as observed during the field observer's walk-through survey.
2)   The scope of service for this Basic Commercial Inspection includes the following:
3)   The Basic Commercial Inspection was conducted according to International Standards of Practice for Inspecting Commercial Properties. The inspection, the Report, and its uses are strictly limited to the scope as described herein. The inspector is a Certified Professional Inspector # NACHI04101795, who works independently of any real estate broker, Realtor association, lender, investor, buyer, seller, appraiser, contractor, or other real-estate related business. The inspector does not modify or omit information in order to influence any person or company. The inspection is in no way intended to be a warranty or guarantee, express or implied, regarding the future use or operability of the building or its components.
General Information
Return to table of contents

Report number: (removed)
Present during inspection: Client, Property owner, Tenant, Realtor, Property Manager
Client present for discussion at end of inspection: Yes
Weather conditions during inspection: Dry (no rain)
Temperature during inspection: Warm
Ground condition: Damp
Type of building: Manufacturing
Buildings inspected: Four units within one building
Main entrance faces: North for unit 1420
Occupied: Two units occupied, two units vacant
4) RECOMMENDED: The following line items are recommended to be corrected prior to occupancy:
Lines 5 and 34 - Evaluation of plumbing in units 1420 and 1430.
Line 35 - Determine location of water meter.
See each line item for details.
5) The water service was not turned on in units 1420 and 1430 during the inspection. The inspector operates only "normal" controls such as faucets, and does not operate shut-off valves or the water meter. As a result, plumbing supply, drain waste and vent lines, traps, pumps, fixtures, and some appliances such as water heaters weren't fully evaluated. The water pressure was not determined. Recommend that a qualified plumber make a full evaluation of the plumbing system after the water supply is turned back on. Any problems that are found after this evaluation should be repaired by a qualified plumber.
6) Many areas and items in units 1430 and 1460 were obscured by furniture and stored items. This often includes but is not limited to walls, floors, windows, inside and under cabinets, under sinks, on counter tops, in closets, behind window coverings, under rugs or carpets, and under or behind furniture. The inspector in general does not move personal belongings, furnishings, carpets or appliances. When furnishings, stored items or debris are present, all areas or items that are obscured, concealed or not readily accessible are excluded from the inspection. The client should be aware that when furnishings, stored items or debris are eventually moved, damage or problems that were not noted during the inspection may be found.
Site, Grounds & Parking
Return to table of contents

Site profile: Minor slope
Parking lot material: Asphalt
7) At the back steps, guardrails with drop-offs higher than 30 inches had gaps that were too large. This poses a safety hazard for children (e.g. falling, getting stuck in railing). Guardrails should not have gaps or voids that allow passage of a sphere equal to or greater than 4 inches in diameter, or 6 inches in diameter at triangular spaces between stair edges and guardrails. Recommend that a qualified contractor repair or replace guardrails per standard building practices.
Photo 7-1
missing guardrail at loading area steps

8) Cracks, holes, settlement, heaving and/or deterioration resulting in trip hazards were found in the north sidewalk. For safety reasons, recommend that a qualified contractor repair as necessary to eliminate trip hazards.
Photo 8-1
trip hazard at north sidewalk

9) The asphalt parking surface was moderately worn and is prone to developing further cracks from water penetration. Recommend that a qualified contractor reseal the parking lot.
10) Storm water drainage appeared to be adequate for this property. A city storm drain was located at the southeast corner of the property at the street. The parking lot had a fairly consistent minor slope from the high point at the northeast corner of the property. However, roof drainage on the west side was not consistent. In the west loading area, two downspouts emptied onto sloped surfaces that then drained into a flat concrete area directly in front of a loading dock. This concrete area did not appear to have adequate slope to provide positive drainage. During heavy rains, water may accumulate in this flat area. During winter, ice may form in this area, creating a trip hazard or vehicle hazard. Recommend monitoring this area to make sure water drains adequately. Recommend keeping an ice-melting product available for use as ice develops in this area.
Photo 10-1
drainage concern at west loading area

11) A fire hydrant was located about 115 feet northeast of the building. And a fire hydrant was located about 95 feet southeast of the building.
Exterior and Foundation
Return to table of contents

Wall structure: Steel/concrete matrix, with sections of metal siding
Foundation type: Concrete slab on grade
Foundation/stem wall material: Poured in place concrete
12) Water damage was noted at the soffit (roof trim) over the northeast delivery door. This appeared to be located beneath a roof section that had substandard drainage. See line 20 below. Recommend soffit repairs as needed, after the roof drainage problem is corrected.
Photo 12-1
soffit damage over northeast delivery door

13) Handrail at the southeast entrance to unit 1450 had significant rust at its base. Some of the support posts were corroded to the extent that they will eventually fail. Recommend repairs as needed.
Photo 13-1
rust, support damage in 1450 railing
Photo 13-2
1450 railing

14) Siding was damaged at one or more west loading docks. Recommend repairs as needed.
Photo 14-1
siding damage at west loading dock

15) Vertical concrete wall panels showed areas of separation at five locations on the west side. At the southwest corner of the building, and at the southwest corner of the north section, approximately 0.75 to 1.25 inches gaps were found, with previous repairs apparent. At the northwest end of the south section, and at the northwest end of the north section, the gaps were smaller. At the interior corner of the west loading area, a gap had been filled with foam sealant, which is a substandard repair. Recommend evaluation and repairs by a qualified concrete contractor.
Photo 15-1
vertical separation at southwest corner
Photo 15-2
vertical separation at southwest corner
Photo 15-3
substandard repair at west loading area

16) Concrete wall/siding had been repaired at two ground level locations on the west side. When the gaps are evaluated (see line 15), recommend also having the contractor evaluate these repairs.
Photo 16-1
repair at southwest corner
Photo 16-2
siding repair at southwest drainpipe

17) A minor water stain was noted on the east upper wall (parapet wall). The source of this water stain was not found. Recommend occasional monitoring to make sure an extended leak does not develop.
Photo 17-1
water staining, minor damage on east side

18) Fire department auto-sprinkler standpipe was located on the east exterior surface of the building.
Photo 18-1
fire department standpipe in east wall

19) Two unknown drainpipes were located on the west side of the building, about six feet above ground level. The purpose of these pipes was unknown.
Return to table of contents

Roof inspection method: Traversed
Roof surface material: Built up tar and felt
Roof type: Flat or low slope
20) Ponding (pools of standing water) was found at one or more locations on the flat or low-slope roof surface. Even on a flat roof, water should be removed by a drainage system so that any remaining water evaporates within 48 hours after it rains. Prolonged standing water can result in roof leaks. Recommend that a qualified contractor evaluate and repair as necessary to prevent ponding.
Photo 20-1
roof ponding

21) Insulation was missing from condensate and/or supply lines at rooftop HVAC system. This can result in decreased heating/cooling efficiency. Recommend replacing insulation on these pipes.
Photo 21-1
deteriorated pipe insulation

22) Random skylights showed evidence of past leaks. As a standard precaution, recommend resealing around all skylights.
Photo 22-1
example of skylight water staining
Photo 22-2
example of skylight

23) Roof surface was in overall fair condition, based on certain areas of ponding and leaking. Significant leaking was noted over unit 1460. Roof appeared to have been repaired in the area around the new rooftop HVAC unit. Recommend consultation with the roofers who did these repairs, to determine the extent of repairs. Recommend frequent monitoring to determine the adequacy of repairs. Although this roof surface may be generally acceptable for now, over time it will need more frequent repairs. Suggest consulting with a qualified roofing contractor to consider roof replacement, possibly using a synthetic product such as EPDM. (Also, please note that the roof padlock/combo lock could not be installed. Recommend repair if needed to install padlock/combo lock.)
Photo 23-1
view of roof
Photo 23-2
apparent roof repair over 1460

Loading docks
Return to table of contents

24) In unit 1430, the vehicle door had an automatic opener installed, and the manual lock mechanism on the door hadn't been permanently disabled. The automatic opener can get damaged, or injury can occur if the automatic door opener is operated with the manual lock engaged. A qualified person should disable or remove the lock mechanism per standard building practices.
Photo 24-1
lock on 1430 delivery door

25) In unit 1430, the loading door opener was not attached. This door could not be fully evaluated. Recommend reattaching this door opener mechanism.
Photo 25-1
detached mechanism on 1430 delivery door

26) In unit 1450, the mechanical opener for the center loading door did not operate properly. At times it did not open at all, and at other times it only opened part way. Recommend repair by a qualified overhead door mechanic.
27) In unit 1460, a gap was noted at the north edge of the loading door. Staff described a leak at this location. Recommend repair as needed.
Return to table of contents

Estimated service amperage: 400
Primary service overload protection type: Circuit breakers
Location of main disconnect: Large single lever at right end of west external array
Branch circuit wiring type: Copper
Solid strand aluminum branch circuit wiring present: None visible
28) Non-metallic sheathed wiring was loose, unsupported, or inadequately supported, in unit 1420. Such wiring should be trimmed to length if necessary and attached to runners or to solid backing with fasteners at intervals of 4 1/2 feet or less. Fasteners should be installed within 12 inches of all enclosures. Recommend that a qualified electrician repair per standard building practices.
Photo 28-1
loose electrical wiring

29) Cover plates for switches, receptacles (outlets) or junction boxes were missing or broken, in the warehouse area of unit 1420. These plates are intended to contain fire and prevent electric shock from occurring due to exposed wires. Recommend that a qualified person install cover plates where necessary.
30) In unit 1460, on the south wall of the warehouse area, one or more modern, 3-slot electric receptacles (outlets) were found with an open ground. This is a shock hazard when appliances that require a ground are used with these receptacles. Examples of such appliances include computers and related hardware, refrigerators, freezers, portable air conditioners, clothes washers, and other electrically operated tools. Recommend that a qualified electrician repair as necessary so all receptacles are grounded per standard building practices.
31) Each of the four tenant units had individual meters and individual electrical panels, all of which were in good condition at the time of inspection.
Photo 31-1
main electrical service area
Photo 31-2
example of interior electrical panel

32) Location of electrical disconnect:
Photo 32-1
main electrical disconnect

33) A separate utilities electric standbox was located near the northwest corner of the property.
Plumbing / Fuel Systems
Return to table of contents

Location of main water shut-off: Northeast corner of unit 1430
Water service: Public
Service pipe material: Copper
Supply pipe material: Copper
Drain pipe material: Plastic
Location of main fuel shut-off valve: Four gas meters in west loading area
34) Water supply was off in units 1420 and 1430. However, these plumbing systems did not appear to have been "winterized." Typical winterization includes:These steps did not appear to have been done in these two units. The inspector does not operate shut-off valves, meter valves, circuit breakers, or light pilot lights. This significantly limits the ability of the inspector to evaluate various systems and components such as plumbing fixtures, supply/drain/waste/vent lines and the water heater. They are excluded from this inspection. Recommend when these units have water supply turned on, that a qualified plumber fully evaluate the plumbing systems.
35) The inspector did not determine the location of the water meter. Recommend consulting with the property owner to determine the meter location, that you locate it yourself, or consult with the local water municipality if necessary. It is especially important to find the meter if no main shut-off valve is found because the meter may be the only way to turn off the water supply in the event of an emergency, such as when a supply pipe bursts.
36) Units 1420 and 1450 were vacant. Unit 1430 was occupied as storage but the water supply was not on. These plumbing systems had not been in continuous operation recently. It's possible for plumbing leaks to exist but not be apparent. Leaks can be small and take time to become visible. The inspector normally operates all accessible and operable plumbing fixtures, but this limited inspection may not reveal small leaks that only become visible after constant use of the plumbing system. After taking occupancy, monitor the plumbing systems for leaks that may become apparent. Any problems that are found should be repaired by a qualified plumber.
37) Location of gas meters:
Photo 37-1
gas meters

Water Heater(s)
Return to table of contents

Condition of water heater: Required repair, replacement and/or evaluation (see comments below)
Type: Tank
Energy source: Electricity
Estimated age: 24 years (1989)
Capacity (in gallons): 80
Manufacturer: Rheem
Model number: Rheemglas Standard
Location of water heater: Northwest corner of unit 1420 warehouse
38) The estimated useful life for most water heaters is 8-12 years. This water heater appeared to be beyond this age and/or its useful lifespan and may need replacing at any time. Recommend budgeting for a replacement in the near future, or considering replacement now before any leaks occur. The client should be aware that significant flooding can occur if the water heater fails. If not replaced now, consider having a qualified person install a catch pan and drain or a water alarm to help prevent damage if water does leak.
Photo 38-1
1420 water heater

39) The temperature-pressure relief valve drain line was too short. This is a potential safety hazard due to the risk of scalding if someone is standing next to the water heater when the valve opens. Recommend that a qualified plumber repair per standard building practices. For example, by extending the drain line to within 6 inches of the floor, or routing it to drain outside. For more information, visit:
40) The outer flame shield for the water heater combustion chamber was missing. This is a potential fire hazard. Recommend that a qualified person replace any missing flame shields.
41) The water heater that was inspected was located in the warehouse of unit 1420. No other water heaters were found at this property.
Heating, Ventilation and Air Conditioning (HVAC)
Return to table of contents

General heating system type(s): Forced air
General heating distribution type(s): Ducts and registers
42) Recommend replacing or washing HVAC filters upon taking occupancy depending on the type of filters installed. Regardless of the type, recommend checking filters monthly in the future and replacing or washing them as necessary. How frequently they need replacing or washing depends on the type and quality of the filter, how the system is configured (e.g. always on vs. "Auto"), and on environmental factors (e.g. pets, smoking, frequency of house cleaning, number of occupants, the season). Note that the wrong size filters were installed in the HVAC for unit 1420. This can result in poor air quality, and possible damage to the unit. Recommend installing correct filter sizes.
43) The last service date of the gas-fired forced air furnaces appeared to be more than 1 year ago, or the inspector was unable to determine the last service date. Ask the property owner when they were last serviced. If unable to determine the last service date, or if these systems were serviced more than 1 year ago, recommend that a qualified HVAC contractor inspect, clean, and service these systems, and make repairs if necessary. For safety reasons, and because these system are fueled by gas, this servicing should be performed annually in the future. Any needed repairs noted in this report should be brought to the attention of the HVAC contractor when it's serviced. For more information visit:
44) Each of the tenant units had smaller gas heaters installed near the ceilings of the warehouse areas. These heaters are not considered as efficient as standard HVAC systems. Due to their inaccessibility, these heaters are often overlooked for maintenance. When the annual servicing is performed for the standard HVAC, recommend also having these heaters serviced.
Photo 44-1
example of gas space heater

45) Two rooftop structures appeared to be abandoned evaporative coolers. The metal winter covers had been installed, however these covers had been sealed with some type of caulk or adhesive. These items could not be tested or inspected. Recommend asking the seller about the purpose and status of these items.
Photo 45-1
sealed apparent evaporative cooler

46) Four HVAC units were present at this property. All HVAC units had BTU ratings in the range of 96000 to 108000, which is adequate for their intended use. All units were operable at the time of inspection.
Photo 46-1
HVAC unit in 1420
Photo 46-2
rooftop HVAC
Photo 46-3
rooftop HVAC

Return to table of contents

47) Restrooms in unit 1420 did not have water supply and could not be fully evaluated. Restroom in unit 1430 did not have water supply, and was full of storage items. Restrooms in unit 1450 were in good operating condition at the time of inspection. Restrooms in unit 1460 were in good operating condition at the time of inspection.
Offices/Interior Rooms
Return to table of contents

48) In unit 1450, two doors had double-cylinder deadbolts installed, where a key is required to open them from both sides. This can be a safety hazard in the event of an emergency because egress can be obstructed or delayed. Recommend replacing double-cylinder deadbolts with single-cylinder deadbolts where a handle is installed on the interior side. This refers to the front door, and one interior door, in unit 1450.
Photo 48-1
double-keyed deadbolt, 1450 entrance

49) Carpeting in unit 1420 was significantly stained or soiled. Recommend having carpeting professionally cleaned as necessary.
50) Water staining was noted on the wall of the southwest corner of unit 1420 warehouse. This was indication of a past roof leak. Area was dry at the time of inspection. Recommend occasional monitoring to make sure roof does not continue to leak in this area.
Photo 50-1
water staining at 1420 southwest corner of warehouse area

51) In unit 1460, many ceiling tiles were removed from the dropped ceiling. Staff reported ongoing concerns with leaks in these locations. Leaks appeared to be located near the new rooftop HVAC unit. Recommend consulting with the roofing contractor who has done recent repairs, to determine the extent of leakage and the status of repairs. Recommend frequent monitoring to make sure this area does not continue to leak.
Photo 51-1
roof/ceiling leak area in 1460
Photo 51-2
roof/ceiling leak area in 1460
Photo 51-3
roof/ceiling leak area in 1460

52) Concrete slab floor had random minor cracks, noted more in warehouse areas. These are not a current concern. However recommend occasional monitoring to make sure cracks do not increase.
Document Review & Interviews
Return to table of contents

53)   The following documents were reviewed in order to augment the walk-through survey and to assist the consultant's understanding of the subject property:
The consultant is not required to independently verify the information provided and may rely on information provided to the extent that the information appears reasonable to the consultant. The items on this list were provided by the agencies as listed, and no concerns or physical deficiencies were noted in these items. Review indicates that all inspections were passed or finalized. There is no indication of any outstanding permits. In the event of any future plumbing, electrical, mechanical or building construction, new permit(s) will be required.
54)   The following persons were interviewed to augment the walk-through survey and to assist the consultant's understanding of the subject property:
Additional recommendations & information
Return to table of contents

55)   Material defect is a condition with a real property or any portion of it that would have a significant adverse impact on the value of the real property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect.
56)   OLDER PROPERTY: We expect buildings to be built according to the standard practices and building codes, if any, that were in use at the date of construction. Older buildings often have areas or systems that do not comply with current building codes. While this Inspection makes every effort to point out safety concerns, it does not inspect for building code compliance.

It is common for buildings of any age to have had repairs done, and some repairs may appear less than standard. This Inspection looks for items that are not functioning as intended. It does not grade the quality of the repairs.

In older properties, the Inspector reviewed the structure from the standpoint of how it has fared through the years with the materials that were used. You can expect problems to become apparent as time passes. The Inspector will not be able to find all deficiencies in and around a property, especially concerning construction techniques of the past.
57)   Photos are included to help you better understand the condition of the property at the time of the inspection. Photos are intended to show an example of a concern, but they may not show every occurrence and may not accurately show its severity. Not every concern will have a photo. Do not rely on photos alone.
58)   The Basic Commercial Inspection and the Property Condition Report are performed and prepared for the use of (removed). Consultant accepts no responsibility for use or misinterpretation by third parties. This assessment and report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitabiity, or suitability of the commercial property or its components. Consultant assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. Consultant does not perform engineering, architectural, plumbing, electrical, or any other job function requiring an occupational license in the jurisdiction where the assessment is taking place.

Inspection standard contains certain limitations, exceptions, and exclusions. Examples include, but are not limited to:
59)   A complete fire safety inspection is beyond the scope of the Basic Commercial Inspection. Upon the buyer's possession of the building, recommend contacting the Fire Department and requesting an on-site fire safety inspection. The fire safety inspector will make specific recommendations based on the building's intended use.
60)   Although the subject property was in overall good structural condition, some systems showed a lack of recent maintenance. Ongoing preventative maintenance is a key to maintaining the property's value and its usefulness for the client. Recommend establishing a written Property Maintenance Plan. This plan should include all major systems of the building, such as roof, foundation, electrical, plumbing, HVAC. All public areas of the building, including offices and restrooms, should be included in the plan. Fire safety and other possible safety hazards need to be addressed. It is important to include exterior areas in the Property Maintenance Plan, so that issues of erosion, storm drainage, weed control, gutters, parking, and access/egress are addressed consistently. Depending on the client's requirements, property maintenance may be performed by company employees, or may be contracted to a professional maintenance service company.
Copyright © 2014 Westinspect. This Basic Commercial Inspection Report is the exclusive intellectual property of Westinspect. The client named above has purchased the right to use this Report as part of their due diligence in a real estate transaction. Use of this Report by any unauthorized persons is prohibited.

This Report has been prepared according to International Standards of Practice for Inspecting Commercial Properties.

POLICIES: Privacy Policy, Payment Policy, Recourse Policy and Business Principles can all be found at the Policies page of website

SNAPSHOT: Your Basic Commercial Inspection is like a "snapshot" of the property's condition on a specific date. Those conditions will change, so you need to keep inspecting your property during the time you own it:
Verify that any air conditioning condensate water is draining properly to the exterior after operation on a hot day.
Verify that the gutters and downspouts are performing during a hard rain.
Verify that no water is ponding on the property after a hard rain.
Verify that no dimming or flickering of lights occurs.
Verify that no repeated resetting of any circuit breakers is necessary.
Verify that the quantity of the hot water supply is adequate.
Verify that the performance of the HVAC systems are adequate.
Verify that no leaking is present in the ceiling area during a hard rain.
And inspect any of the other concerns that were mentioned in this Report.

EXPIRATION DATE: This Report describes the property's condition on the date of the Basic Commercial Inspection. Conditions can change daily due to ongoing use, deferred maintenance, and environmental circumstances. Your inspection follow-up service expires 60 days after the inspection date. If you do not purchase this property, then this Basic Commercial Inspection Report expires on the date that the purchase contract expires or is canceled. If you like, you may allow others to read this Report as a part of your informed decision-making. You are not authorized to pass this Report on to other potential buyers, or to other real estate agents.