Commercial Pricing

I typically use $0.15 to $0.20 for pricing most commercial buildings (used as office and warehouse combo). Investor called wanting a bid on inspecting a bldg he wants to buy (10,500sf office / warehouse bldg). 25% office and 75% warehouse

Is vacant for a year or 2. It has 4-5 roof-top pkg units (L/Agent could not remember which). No internal roof access and 30’ 38’ high roofs. 4 or 5 overhead garage bays for tractor trailers. No idea how many electrical panels, water heaters, bathroomss, if kitchenette is present, etc. I shot them a range of $1,600- $2,000 depending on what I find when I get there, time, etc for roof, foundation, main mechanicals, main electricals, main plumbing, baths, site, exterior, etc.

They came back and said they have just told the seller remodeled the inside and made it a 2-story office with about 4,000-7,000sf more finished area AND they want the bldg inspected like a home insp (room by room, etc). AND they said they would pay $1,650 total.

Looking for opinions of price structure for guys doing commercial buildings.

Same outside footprint BUT now 75% office / 25% warehouse.

$0.15-$0.20 is what we charge. Some will try to negotiate pricing. Do whatcha gotta do.

What kind of turnaround time do they want the report in? If 3 days or less, (5 days being standard) be sure to charge a premium, as you will need to free up time to get the report done, without affecting any other work you may have.

$100 for every 1000 sq ft. There is a lot of open space in these applications. However, I would leave yourself opportunity to add for specialty situations such as multiple kitchens, bathroom groups, etc. But people like to feel like they are getting a deal. It is more important to leave room for that. I tell people 5 days on the turnaround. More if I need it. Gives me time to go get it done, as I am sure to have residential inspection in that time frame as well. I usually have a minimum of 500 photos on these and you will need plenty of time to accurately report everything you see.

Dan, I really want to get into commercial inspections, but I have only done one so far, so I cannot speak from experience.

How do we get to where the client decides what we are going to charge? If they say $1650 max, I would say, okay, which half would you like inspected? Maybe I have the wrong attitude.

I need my teeth cleaned, and probably two fillings. Which dentist could I call and say I want this done, and I will pay a maximum of $175 for this service? I think they would hand me some pliers and a 1/2 pint of Jack Daniels…

Your square foot price sounds reasonable.

You are in the ballpark. I start at .20 around here but our pricing has always been a little higher. There price seems a little low though. At .20 with the basic footprint you are at $2100.00 without adding the extra square footage.

I’ve scheduled 3 commercial inspections this week.
2 scheduled for tomorrow:
The smallest one is 3,000 s.f. and will bring $750 for a 2 hour inspection.
The other one is an empty 20,000 s.f. warehouse which is scheduled for 3 hours- $2,300.
Life is good!!!:p:p

Oh, and I have a free dental plan.

lol. I was just kidding about the dentist, Linus! I’m from WV- I only have one tooth! :|.)

I don’t think there’s that much commercial business in WV, or maybe I just need to do a better job of marketing the service…

I always figured you were smarter than Jethro Bodine. You’ll figure it out. Commercial inspections will grow with a growing economy this year.
http://www.propertywire.com/news/global-news/global-commercial-property-markets-201312068543.html

great article, but it relates to a*** growing economy***, not WV :wink: