Office buildings can deliver stable rental income and long-term appreciation—but only when the true condition of the asset is known before closing. Aging systems, moisture intrusion, inaccessible rooftop equipment, and deferred maintenance can quietly turn a strong deal into a high-liability acquisition.

This case study highlights how The Real Estate Inspection Company helped an investor, broker, and commercial agent team successfully secure a $16 million, 4-story, 42,000 sq. ft. multi-tenant office building in San Diego County by identifying major repair needs early, allowing for price negotiation, budget planning, and lender confidence.

Our commercial inspection services are available across San Diego County, Riverside County, and Orange County.

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The Challenge: Hidden Risks in a Multi-Tenant Office Building

The investor’s team was under tight loan and escrow timelines. The building—constructed in the 1980s—had multiple tenants in place and was generating revenue, but older office properties often conceal long-term moisture, HVAC, and elevator liabilities that don’t show up during a walkthrough.

They needed clarity on capital expenditure risks, safety concerns, lender compliance, and future maintenance costs before finalizing the purchase.

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Our Solution: Full Commercial Property Inspection Aligned with ComSOP Standards

Our CCPIA-certified commercial inspectors conducted a full assessment following the International Standards of Practice for Inspecting Commercial Properties (ComSOP). The inspection covered all major building systems, structural areas, tenant-impact components, and safety concerns.

Key Findings Included:

• Roof & Building Envelope Risks
  Vegetation was in direct contact with exterior walls, creating moisture intrusion risk and rodent pathways. Recommended clearing and pest control consultation.
• HVAC System Nearing End of Life
  Multiple rooftop units showed signs of deferred maintenance and efficiency loss. Advised planning significant capital upgrades.
• Subterranean Parking Garage Moisture Intrusion
  Active moisture seepage observed—potential impact on structural integrity and tenant safety. Immediate waterproofing and drainage remediation recommended.
• Elevator Inoperable at Time of Inspection
  Required licensed elevator contractor repair before occupancy delays or liability exposure.
• Balcony & Exterior Decking Waterproofing Issues
  Failing waterproof membranes and improper slope detected. Recommended consultation with a commercial waterproofing specialist.
• Next-Day Report Delivery with Prioritized Action Items
  A clear breakdown separated Immediate Repairs vs. Future Capital Planning, supporting both closing negotiation and long-term asset strategy.

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The Outcome: Risk Turned Into Negotiation Leverage

By identifying these conditions before closing, the investor and broker team gained:

• Deal Security — No surprises surfaced post-inspection that would threaten financing.
• $500,000 Capital Reserve Planning — Budget was allocated for HVAC, elevator, waterproofing, and parking garage moisture remediation before tenant impact.
• Negotiation Advantage — The broker leveraged documented findings to negotiate a purchase price adjustment, increasing investor ROI.
• Lender Approval & Confidence — Clear inspection documentation and repair planning satisfied lender due diligence requirements.
• Tenant Safety & Asset Preservation — Addressing elevator and moisture issues early improved safety, tenant retention, and future valuation.

Without this inspection, the investor risked financing delays, emergency capital outlays, and reputational risk with tenants—all avoidable with proper due diligence.

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Why Brokers & Investors Trust Our Commercial Building Inspections

Our inspections are designed for commercial agents, lenders, and investors handling high-value assets across San Diego, Riverside & Orange County.

Here’s What Sets Us Apart:

• Office-specific system insight — HVAC lifespan, waterproofing failures, elevator liability, capital risk forecasting
• Next-day reporting to match escrow timelines
• Negotiation-ready documentation to support ROI and lender compliance
• CCPIA-certified commercial inspection team experienced with investor, broker, and lender expectations

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Protect Your Next Office Building Deal with Confidence

Whether you’re handling a Class B office repositioning, SBA-backed acquisition, REIT transaction, or broker advisory role, having a commercial inspection partner that understands deal velocity and capital risk makes all the difference.

👉 Schedule a Commercial Property Assessment today:
https://sdinspect.com/commercial-property-condition-assessment/
Or call 760-385-2295