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Commercial Property13 October 20252 min read

Commercial Property Due Diligence: What a Technical Inspection Should Cover

Pre-acquisition technical due diligence on commercial property is the buyer's last chance to find what the vendor didn't disclose, and the scope matters.

In this category →Commercial Property Inspection Software

A technical due diligence (TDD) report is the inspection layer of a commercial property acquisition. It sits alongside legal and financial due diligence and gives the buyer an independent view of physical condition, compliance, and capital expenditure exposure over a typical 10-year hold.

A complete TDD scope should cover structure (frame, slabs, foundations), building envelope (roof, facade, waterproofing), mechanical services (HVAC, lifts, fire), electrical and hydraulic services, vertical transportation, fire and life safety compliance, building code and disability access compliance, environmental risk (contamination, asbestos, hazardous materials), and energy efficiency benchmarks (NABERS rating).

The output should include a CapEx forecast over 10 years, broken down by year and asset category, with replacement reserves and a remaining useful life estimate for each major plant item. This is what the asset manager will use to model returns.

TDD scope should be agreed in writing before the inspection. Buyers often try to compress scope to save fees and then regret it when a major capex item surfaces post-completion. The cost of a thorough TDD is small compared to the cost of an unexpected chiller replacement or facade rectification.

Engage independent inspectors who have no relationship with the vendor, agent, or property manager.

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