Considering buying a retail property but feeling overwhelmed with the amount of due diligence that needs to be done?
Due diligence can seem like a mountain of work unless you learn how to break down each step of the process into smaller, more manageable parts.
And although you’ll need a host of people on your side to help you get things done, there is one thing you can do on your own that not only helps you become acquainted with the property inside and out, but also helps you be a better commercial real estate investor: a walkthrough.
A walkthrough is simply taking a walk through a property in order to inspect it. As you gain experience, finding and analyzing the severity of problems during a walkthrough will get easier, but until then, you can use this handy checklist for retail property inspections to help you do a thorough job.
Building Exterior
1.What is the building made of?
2.What condition is it in?
3.What is the surface made of?
4.What type of condition is it in?
5.What is the foundation made of?
6.What condition is it in?
7.What is the condition of the exterior glass?
8.What is the roof made of?
9.What condition is it in?
10.From what company are the HVAC units?
11.What is their tonnage?
12.What kind of condition are they in?
13.Are there shipping or loading docks?
14.What type of condition are they in?
15.Are the doors secure?
16.What type of condition are they in?
17.What type of water system is there, and who provides it?
18.What type of sewer system is there, and who provides it?
19.What are the parking lots made of?
20.What type of condition are they in?
21.Are there specific spots for hybrid or compact cars?
22.Are there any potholes?
23.Are there any broken curbs?
24.Do they need to be sealed?
25.Do they need to be re-striped?
26.Is there covered parking?
27.Are there any abandoned vehicles?
28.Is there proper lighting?
29.Is there landscaping?
30.What condition is it in?
31.Is it adequate for the area?
32.Does the landscaping obstruct any utility boxes?
33.Does the property have any dead or dying trees?
34.Are there any spots with dead grass?
35.Is there an irrigation system in place?
36.Does it work?
37.Are the sprinklers located away from the sidewalks?
38.Are the flower beds turned?
39.How is the trash removed from the building?
40.What types of containers are used?
41.How large are they?
42.What condition are they in?
43.Where is the signage for the building located?
44.What condition is it in?
Building Interior
45.If there is more than one unit, are there vacancies?
46.How many?
47.Where are they located?
48.Are the vacant spaces in showable condition?
49.What are the doors to the property made of?
50.What are the interior walls made of?
51.What condition are they in?
52.Is there a basement?
53.Is it tidy?
54.Is it well-lit?
55.Is it easily accessible?
56.Are there any flammable materials stored there?
57.Are items stored in an orderly fashion?
58.Is there a maintenance room?
59.What condition is it in?
60.Is it well-kept?
61.Is it well-lit?
62.Is it easily accessible?
63.Is there a boiler room?
64.Is it kept locked?
65.Are all electrical boxes covered?
66.Are all electrical panels locked?
67.Are they free of obstructions?
68.Are they any frayed wires in the building?
69.Are there smoke alarms in the building?
70.Are there fire extinguishers in the building?
71.Have they been serviced within the last year?
72.Has a complete breakdown and internal inspection been done within the last six years?
73.Does the building have a sprinkler system?
74.Has the sprinkler system been inspected within the last year?
75.Are exit doors clearly marked with signs posted above exterior doors?
76.Are there fire evacuation diagrams placed throughout the building?
