Leasing a restaurant space is an exciting opportunity—but it can also come with hidden risks that lead to unexpected, costly repairs. That’s why a thorough Property Condition Assessment (PCA) is essential before signing on the dotted line.

Recently, The Real Estate Inspection Company was hired to inspect a historic 1934 restaurant space—a 6,700+ sq. ft. property featuring a commercial kitchen and upstairs bar. While the building had plenty of charm, our inspection uncovered critical issues that could have left the tenant footing the bill for major repairs.

Restaurant Use Case – What We Found During the Inspection

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Roofing Risks

We discovered ponding water on the flat roof, cracked clay tiles, missing vent caps, and failing mortar bonds. Left unchecked, these issues could have led to leaks and tens of thousands in repair costs.

HVAC Concerns

Of the three rooftop HVAC units, one wasn’t working and another was close to the end of its 20-year life span. We flagged both, giving our client leverage to negotiate landlord repairs or concessions.

Safety & Compliance Issues

Our team found an outdated fire alarm tag, missing address numbers, and a damaged fire door. These weren’t just cosmetic concerns—they were safety and compliance issues that could have delayed operations or created liability risks.

Restaurant-Specific Problems

From grease buildup in the kitchen hood to an inoperable walk-in refrigerator and an expired hood cleaning tag, these restaurant-specific issues had the potential to cause health code violations—a major obstacle for any food service business.

How Our Report Protected the Client

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Our detailed PCA, including cost-to-cure estimates, gave the broker and their client the information they needed to:

✔️ Negotiate fair lease terms
✔️ Ensure landlord repairs were completed before move-in
✔️ Avoid unexpected maintenance costs
✔️ Keep the deal moving forward without costly delays

In the end, our inspection not only protected the tenant’s investment but also gave them confidence that their restaurant could open smoothly and operate safely.

Why This Matters for Brokers & Tenants

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As a commercial broker or tenant, your reputation and investment are on the line. A missed inspection detail can mean the difference between a smooth lease and years of unexpected expenses.

At The Real Estate Inspection Company, our CCPIA-certified inspectors provide comprehensive commercial assessments designed to:

• Minimize financial risk in lease negotiations
• Protect tenants from surprise repair costs
• Help brokers close deals with confidence

Ready to Protect Your Next Lease?

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Don’t let hidden property issues derail your client’s restaurant or retail deal. Our inspections uncover the details that matter most, giving you the leverage to negotiate smarter and avoid pitfalls.

👉 Schedule a Commercial Property Inspection today or call 800-232-5180.

#CommercialRealEstate #RestaurantLeasing #CRE #PropertyInspection #