Commercial property transactions are more complex than residential purchases. Whether you're buying your first business premises, leasing office space, or investing in commercial property, professional surveying advice is crucial. Our Glasgow surveyors specializing in commercial property explain what business owners and investors need to know.
Why Commercial Property Surveys Differ
Commercial properties present unique considerations compared to residential:
- Higher Values: Commercial properties typically cost more, making thorough assessment even more critical
- Business Impact: Property defects can disrupt business operations and profitability
- Specialist Requirements: Offices, retail units, warehouses have specific functional needs
- Lease Complexity: Commercial leases involve repairing obligations, dilapidations, and break clauses
- Investment Performance: Commercial property must generate appropriate returns
Our chartered building surveyors understand these complexities, providing commercial property services tailored to business needs across Scotland.
Types of Commercial Property Surveys
Building Surveys for Commercial Property
Comprehensive inspection covering:
- Structural condition assessment
- Building services (heating, ventilation, electrical systems)
- Roof, walls, and envelope condition
- Compliance with regulations (fire safety, accessibility)
- Major defects and repair priorities
- Estimated repair costs
Cost: £1,500-£5,000+ depending on size and complexity
When needed: Before purchasing commercial property, especially older buildings or those with visible defects
Condition Surveys for Lease Purposes
Detailed property condition documentation at lease commencement or termination. These surveys record:
- Current condition of all elements
- Photographic evidence
- Existing defects and deterioration
- Compliance with lease repair standards
Cost: £800-£2,500+ depending on size
Purpose: Protects tenants from liability for pre-existing defects and helps landlords document condition at tenancy start
Dilapidations Surveys
Assessment of tenant's repair obligations under lease terms. Our property consultants examine:
- Lease repair covenants
- Current property condition
- Breach of repair obligations
- Cost to remedy breaches
- Diminution in value
Cost: £1,000-£4,000+ depending on complexity
Critical for: Landlords preparing claims and tenants assessing liabilities before lease end
Commercial Property Valuations
Our RICS registered valuers provide commercial property valuations for various purposes:
Market Valuations
Assessment of property's market value considering:
- Location and accessibility
- Property condition and specification
- Current tenant and lease terms
- Comparable transactions
- Market conditions
Uses: Purchase, sale, accounts, insurance, loan security
Investment Valuations
Analysis of property as investment including:
- Rental income assessment
- Void periods and costs
- Yield analysis
- Capital growth potential
- Risk factors
Uses: Investment decisions, portfolio analysis, financial planning
Red Book Valuations
RICS-compliant formal valuations meeting professional standards. Required for:
- Loan security (lender requirements)
- Financial reporting
- Tax purposes
- Legal disputes
Our property consultants provide Red Book valuations recognized by lenders, accountants, and legal professionals across Scotland and the UK.
Key Considerations for Different Commercial Property Types
Office Buildings
Critical factors:
- Air conditioning and ventilation systems
- IT infrastructure and connectivity
- Floor loadings for equipment
- Natural light and energy efficiency
- Accessibility and disabled facilities
- Car parking provision
Retail Units
Essential considerations:
- Location and footfall
- Shopfront condition and visibility
- Internal layout and configuration
- Loading and delivery access
- Security systems
- Planning use class
Industrial and Warehouse
Key assessment areas:
- Clear height and column spacing
- Loading doors and access
- Floor loadings and condition
- Power supply capacity
- Drainage and utilities
- Yard space and circulation
Understanding Commercial Leases
Commercial leases differ significantly from residential. Our surveyors in Glasgow help clients understand:
Repairing Obligations
Full Repairing and Insuring (FRI): Tenant responsible for all repairs, maintenance, and insurance. Most common for single-occupancy buildings.
Internal Repairing: Tenant maintains interior, landlord handles structure and exterior. Common in multi-let buildings.
Schedule of Condition: Limits tenant liability to maintaining property at condition documented when lease commenced. Essential protection for tenants taking older premises.
Dilapidations
At lease end, landlords can claim for:
- Breach of repair covenants
- Failure to decorate per lease terms
- Unauthorized alterations
- Reinstatement of premises
Dilapidations claims can run to tens or hundreds of thousands. Our building surveyors provide:
- For tenants: Assessment of likely liability, negotiation advice
- For landlords: Dilapidations schedules, claim preparation
Commercial Property Due Diligence
Before purchasing or leasing commercial property, comprehensive due diligence is essential. Our property consultants recommend investigating:
Physical Factors
- Building condition and defects
- Compliance with current regulations
- Asbestos presence (common in older buildings)
- Energy performance and running costs
- Service charges (if applicable)
Legal Factors
- Title and ownership
- Planning permissions and restrictions
- Existing leases and tenant rights
- Service charge provisions
- Environmental issues
Financial Factors
- Market value vs asking price
- Rental income and yields
- Void periods and reletting prospects
- Operating costs
- Capital expenditure requirements
When to Commission Commercial Property Surveys
Before Purchase: Always obtain comprehensive building survey, even for apparently modern properties. Commercial property defects can be extremely expensive.
Before Leasing: Commission condition survey to document property state. This protects you from dilapidations liability for pre-existing defects.
During Lease: Regular condition surveys help you stay on top of repair obligations and prevent accumulation of maintenance backlog.
Before Lease End: Obtain dilapidations assessment early (ideally 12-18 months before expiry) to understand liabilities and plan remedial works.
For Investment Decisions: Professional valuation and condition assessment inform purchase decisions and portfolio management.
Cost vs Value of Commercial Surveys
Commercial property surveys cost more than residential, but they're proportionate to values and risks involved:
Survey Cost: £1,500-£5,000 typically
Potential Savings: £10,000-£100,000+ by identifying defects before commitment, negotiating price reductions, or avoiding unsuitable properties
For commercial property agents, investors, and business owners, professional surveys are essential risk management, not optional extras.
Working with Commercial Property Agents
Commercial property agents handle marketing and negotiations, but they don't provide independent technical assessment. Our chartered building surveyors complement agents by offering:
- Objective condition assessment
- Independent valuations
- Technical due diligence
- Expert advice on suitability
Good commercial property agents welcome professional surveys - they facilitate transactions by providing clarity on property condition.
Special Considerations for Scotland's Commercial Property Market
Scotland's commercial property market has unique characteristics:
- Different Legal System: Scottish property law differs from England
- Market Conditions: Glasgow, Edinburgh, and Aberdeen have distinct commercial markets
- Building Types: Many commercial buildings in Scottish cities are older, with specific maintenance requirements
- Climate: Scottish weather demands robust building envelopes and weatherproofing
Our surveyors Scotland-wide understand these local factors, providing advice relevant to Scottish commercial property.
Questions to Ask Commercial Property Surveyors
When selecting property consultants for commercial work, ask:
- "Do you specialize in commercial property surveys?"
- "What experience do you have with this property type?"
- "Are you RICS registered?"
- "Can you provide example reports?"
- "What's your typical turnaround time?"
- "Do you provide follow-up advice and negotiation support?"
- "What's your fee structure?"
Our RICS qualified team provides comprehensive commercial property services across Glasgow, Edinburgh, and throughout Scotland.
Final Advice for Business Property Decisions
Commercial property represents significant investment and ongoing commitment. Whether buying, leasing, or investing, professional surveying advice protects your interests by:
- Identifying hidden problems before commitment
- Providing accurate valuations for informed decisions
- Assessing suitability for intended use
- Estimating ongoing costs and liabilities
- Supporting negotiations with objective information
Don't economize on professional advice when dealing with commercial property. The cost of surveys is minimal compared to potential problems from inadequate due diligence.
Need Commercial Property Expertise?
Our team of RICS registered valuers and chartered building surveyors provides comprehensive commercial property services across Scotland. From building surveys to lease advisory, we support business property decisions with professional expertise.