Whether you’re purchasing a new commercial property, retail unit, office or industrial unit; you already own commercial property; you are purchasing a new school site, church or listed building; or have responsibility for maintaining any of these buildings, then you will need some form of commercial building survey.
They provide detailed information about a property’s condition, compliance with regulations, and potential issues that need attention. In this article, our experts break down each type of survey, the benefits they bring, and how much they cost. But, first things first, what is a commercial survey?
A commercial building survey is a survey on any form of commercial property (which could be a retail, office, industrial, or public building space), and is conducted ahead of a purchase or the signing of a contract. Examples of commercial surveys include pre-acquisition and pre-lease surveys, dilapidation assments, and Planned Preventative Maintenance Reports (PPM).
Read on to learn about the different types of commercial surveys, how much a commercial survey costs, and what to expect when the survey takes place.
What is a Commercial Survey?
Commercial surveys are assessments conducted on commercial property (i.e. buildings used for business purposes, rather than to live in) to evaluate their condition, structure, and compliance with regulatory standards. Here are some common types of commercial surveys:
Pre-Acquisition Survey
A pre-acquisition survey is completed before the purchase of a property. During this survey, a surveyor will carry out an in-depth visual and structural analysis of the property, and review any relevant and prior shared documentation in relation to the property. They will then provide you with information regarding any repairs that need to be made, and how much they may cost to fix. You can use these estimates to negotiate a fairer price for the commercial property if required.
There are so many benefits to getting a pre-acquisition survey carried out. Learn more in our helpful blog: Why Do I Need A Pre-Acquisition Survey?
Pre-Lease Survey
If you’re planning to take on a commercial tenancy, you need a pre-lease survey. A pre-lease survey is conducted prior to signing a commercial lease agreement and looks at the property’s current condition, the dilapidations liabilities you may take as a tenant, the cost of these obligations, compliance issues with the site, asbestos and other hazardous materials risks, and how to reduce these liabilities prior to finalising either your heads of terms or the lease agreement.
If you’re a business owner, finance director, business manager or office manager about to undertake a new commercial lease, you might find one of our recent blogs helpful: How To Rent a Commercial Property
Schedule of Condition
A schedule of condition should be completed before the start of a new tenancy. It provides photographic, and sometimes video, evidence of the property’s condition at the outset. This serves as a benchmark that tenants must maintain throughout the lease, ensuring the property is returned in its original state.
This report can be beneficial to both landlords and tenants, depending on the circumstances. It’s essential to manage this process carefully to ensure the schedule is fair and does not unduly favour either party.
Condition Survey
A condition survey is a detailed assessment of a property’s current state, identifying any existing defects, wear, or potential maintenance issues. Unlike a schedule of condition, which sets a baseline for tenancy agreements, a condition survey is often used for property management, conservation planning, or prior to refurbishment projects.
This type of survey helps property owners, landlords, or conservation professionals understand necessary repairs and future maintenance needs, ensuring informed decision-making.
Dilapidation Assessment
A dilapidation assessment or survey goes hand in hand with a schedule of condition report if you’re looking at leasing a commercial property. You may also be a commercial tenant who is considering relocating or closing that business location; typically this will mean exercising a break clause, surrendering your lease early or ending your lease.
Before doing this, it’s essential to understand you’re dilapidations liability as any of these situations will lead to your landlord serving a dilapidations claim upon you.
A dilapidations assessment will undertake a thorough inspection of the property and provide advice on your potential liabilities, compliance issues, best and worst case scenarios and next steps to reduce your dilapidation costs.
Dilapidation reports can be difficult to understand as a tenant. Learn more in the helpful blog: Understanding Dilapidations Claims as a Commercial Tenant
Planned Maintenance Reports
A PMR or Planned Preventative Maintenance report is used to track, document, and analyse maintenance activities scheduled for equipment, facilities, or systems. It provides an overview of preventive measures aimed at ensuring operational efficiency, reducing downtime, and extending the lifespan of assets.
They form an essential part of any landlord’s demonstration of compliance, their maintenance liabilities and are often used to evidence service charge expenditure. Estates Managers, Property Managers and Asset Managers will typically use a PPM to forecast spend, identify where additional funds may be required and ensure they are up to date with all compliance matters. They are regularly used across the commercial, office, retail, education and medical estates to manage individual buildings and multiple site portfolios.
Tenants may engage a chartered surveyor to undertake a PMR to ensure they are forecasting their maintenance costs accurately, avoiding reactive costs and to manage dilapidations and compliance liabilities.
Why Are Commercial Surveys Important?
The main benefit of having a commercial survey conducted before the purchase or lease of a property is the ability to identify potential issues before making a commitment. This gives tenants and landlords the ability to be proactive and develop a sustainable strategy to reduce long term costs.
Much like residential surveys, commercial surveys offer a closer look into the structural and physical elements of a property, which you may be responsible for once you take on responsibility. If issues are identified early on, you’ll get a clearer idea of the costs of remedial works, and you may even be able to negotiate the lease or purchase price based on survey findings.
But, that isn’t the only benefit of a commercial building survey. They can also:
- Ensure compliance with regulations and standards;
- Facilitate informed decision-making for investors, tenants, and business owners;
- Enhance the overall property value and safety standards by identifying and addressing issues early on.
What To Expect From a Commercial Building Survey
Here’s a breakdown of what you can usually expect during the commercial building survey process:
- Consultation; Any professional RICS surveyor will start with a consultation. This includes identifying the type of survey required, any particular focus areas for the inspection, and other important details to prepare for the site visit.
- Site visit; During the site visit, the surveyor, sometimes accompanied by other specialist consultants, will conduct a thorough inspection of your property. The duration and specific areas inspected depend on the type of survey being performed but typically takes a few hours.
- Customised report; After the site visit, the surveyor compiles their findings into a bespoke report. This report details any issues that need addressing, provides estimated costs for remedial work, and outlines the recommended next steps.
- Ongoing support; Your surveyor should remain available to offer advice and guidance as you proceed with any necessary remedial work, ensuring you have professional support throughout the process.
How Much Does a Commercial Survey Cost?
The price of a commercial survey entirely depends on the project at hand, so it’s hard to give a rough estimate. It will vary depending on property size, age, condition, and the scope and complexity of the survey required. Here’s a breakdown of what each type of commercial survey might cost:
- Pre-Acquisition Survey; from £995
- Pre-Lease Survey; from £875
- Dilapidation Assessment; from £875
- Schedule of Condition Report; from £495
- Planned Maintenance Report; from £1095
- Dilapidations claim response and negotiation; from £995
Reliable Commercial Building Surveys From Fourth Wall Building Consultancy
If you’re looking for a commercial surveyor, choose Fourth Wall. We have a team of chartered surveyors who’ll act as an extension of your team throughout the whole process. We always offer reliable, honest advice, with your best interests in mind throughout everything we do.
Ready to get started? Call or email our team, or complete this form for a tailored quote within 24 hours – we look forward to hearing from you!
