Exploring Commercial Property Inspection Report Software

A solid commercial property inspection report software goes beyond work order system for property management and simple communication. It is the foundation of your company—the core of your organization's operational efficiency.

The best property management systems are going to be tailored to your company's unique requirements. It is a data machine that helps to simplify activities such as inspections, repair orders, and maintenance. It reduces risk. It boosts tenant retention. It enables you to make more informed choices based on data and analytics.

It's a way to track progress and get insight into when you need to make choices or grow your commercial property resources. Choosing the correct one, then, is a process that requires great thought and planning.

What Is Commercial Property?

The most basic definition of commercial real estate is a property that can create profit via either capital gain or rental revenue. 

Commercial property areas include office buildings, residential duplexes, restaurants, and even a warehouse. It can be considered commercial property if you can generate money by leasing or owning and reselling it.

How is it Different From Residential Property?

Commercial real estate differs from residential real estate in four important ways:

• Purpose: Commercial real estate property usually serves as a place of business, not a place of dwelling, except for residential rental assets such as apartment complexes. Commercial spaces exist to act as workplaces that generate revenue for owners and investors.
• ‍Price: Because commercial properties are frequently bigger structures on vast plots of land in heavily visited business locations, they are far more costly than residential properties and are therefore more likely to be held by a group of investors rather than individuals. 
• ‍Occupants: While residential property is often owner-occupied, commercial property is typically inhabited by business tenants who lease the property from the owner or a group of investors. 
• ‍Lease lengths: Typically, commercial real estate properties have longer lease terms than rental residential properties, with retail and office spaces having the longest leases averaging 5-10 years, as opposed to ordinary residential apartments or residences, which may be rented for six months to a year.

Different Types of Commercial Real Estate

CRE property ranges from industrial space to hotels and open land, but it often falls into one of six types of commercial property resources:

1. Office

Office buildings are divided into two types: urban and suburban. Urban office buildings can be found in cities and include skyscrapers and high-rise structures, some of which can be as large as a few million square feet. Suburban office buildings are often lower in size and are occasionally clustered in office parks.

Office buildings can be found in a variety of configurations, including multi-tenanted and build-to-suit options. They are also divided into three categories: Class A, Class B, and Class C. According to the Building Owners and Managers Association International (BOMA):

Class A

The most prominent buildings compete for top office customers, with rents above the regional average. Buildings feature high-quality standard finishes, cutting-edge technology, excellent accessibility, and a strong market presence.

Class B 

Office space rentals in Class B buildings are typical for the region, making them competitive for a variety of uses. Building finishes are adequate to excellent for the neighborhood. The building details are appropriate for the region, and the systems are decent, but it cannot compete with Class A at the same price.

Class C 

buildings compete for tenants seeking practical space at rents lower than the region average. Medical office buildings are a subset of this market.

2. Retail 

Retail refers to the commercial facilities that house the stores and restaurants that we visit. They may be multi-tenant (typically with an anchor, or lead tenant, who drives traffic to the leased property) or single-use, stand-alone structures.

The retail sector is difficult since the kind of shopping center is determined by a variety of factors such as size, concept, type and number of tenants, and trade region.

Big-box malls (typically with a national chain like Target, Walmart, Best Buy, or Dick's Sporting Goods) and pad sites (single-tenant buildings inside a shopping center, commonly a bank, restaurant, or pharmacy store) are examples of single-tenant buildings.

3. Commercial

Industrial buildings house a range of tenants and are often situated outside of metropolitan areas, particularly along key transportation routes. Low-rise structures can be additionally clustered together to form industrial parks. The properties are divided into four categories:

• Heavy Manufacturing: These structures are highly tailored and contain the equipment required by manufacturers to operate and create products and services.
• ‍Light Assembly: These are less tailored and may be utilized for product assembly or storage. Bulk warehouses are often big structures that serve as distribution hubs.
• ‍Flex Industrial: These buildings combine industrial and office space.

Remember that industrial land use has its own set of zoning restrictions, with items like R&D facilities having a particular form of industrial zoning.

4. Multifamily

Commercial real estate is defined as any property with five or more residential units held by a single organization. The multifamily sector encompasses all forms of residential real estate other than single-family houses, such as apartments, condominiums, co-ops, and townhomes. Multifamily property, like office buildings, is often classed as Class A, Class B, and Class C. 

Apartment buildings, in particular, are divided into many property kinds. Freddie Mac has classified them into six categories:

• High-rise: A structure with nine or more stories and at least one elevator‍
• Mid-rise: A multistory structure with an elevator, usually in a city
• ‍Garden-style: A one-, two-, or three-story apartment building constructed in a garden-like setting in a suburban, rural, or urban environment; structures may or may not have elevators
• ‍Walk-up: A four- to six-story structure with no elevator. The operator of a mobile housing development rents ground plots to owners of prefabricated houses
• ‍Special-purpose housing: Any kind of multifamily building that caters to a certain demographic segment, such as student housing, elders housing, and subsidized (poor income or special need) housing.

5. Hotel(s)

The hotel industry includes enterprises that provide lodging, dining, and other services to visitors and tourists. The hotels might be independent (boutique) or branded (part of a big hotel chain, such as Marriott or Sheraton). Real Capital Analytics divides them into six categories:

• Limited service: There is no room service, no on-site restaurant, and no concierge.
• Full-service: Includes room service and a restaurant on-site.
• Boutique: A boutique hotel is one that is located in an urban or resort setting, provides full-service facilities, is not part of a major chain, and has fewer rooms.
• Casino: A gambling establishment that offers games such as video poker or slot machines.
• Extended-stay: Limited-service accommodations with fully equipped kitchens in guest rooms and bigger rooms for extended visits.

Full-service resort with a huge amount of property in a traditional resort area (such as Hawaii or Orlando) with an accompanying golf course, water park, or entertainment complex.

6. Special Purpose

Commercial real estate investors may hold special purpose real estate, but it does not fit into any of the categories indicated above. Special-purpose facilities include, for example, open ground for fairs, amusement parks, churches, self-storage, and bowling lanes.

What is a Commercial Property Inspection?

A commercial property inspection report software determines the property's genuine worth, condition, and required repairs. It's usually done at the request of portfolio managers, who hold and sell a variety of comparable assets for a profit.

Return on investment (ROI) and residual value are important considerations in commercial real estate investments. Portfolio managers want to know two things: "How much will this cost?" and "How long will this take?" with the question "How much will I make on this investment?" 

This is when an inspection is useful. It illustrates the lifespans of five important building systems:

• Structural Integrity 
• Roofing
• Plumbing 
• Heating, Ventilation, and Air Conditioning (HVAC)

Real estate management teams want to know whether the roof or HVAC system will need to be replaced in the next few years, or if electrical components will need to be changed due to a change in building usage. 

A building audit or inspection can help in answering these issues. The final report advises the portfolio firm on whether or not purchasing the property is a good investment.

What Makes a Good Commercial Property Inspection Report Software?

A good system is meant to be as adaptable as your company, to expand as you develop, and to be simple to learn and use. This means:

• Intuitive Utilize - You have a diversified crew that will need to plug in and utilize this product right away. Software that is difficult to use could prove detrimental not just to productivity but also to staff morale.
• ‍Mobile Compatibility - The app should be compatible with mobile devices such as smartphones and tablets. This enables you to do inspections on the fly and retrieve reports from anywhere. It also makes the software more user-friendly and accessible.
• ‍Offline Access - If you're in the basement of a building monitoring a system or meeting with the maintenance team, you'll need access to the data in your system. Online access can make this harder.
• ‍Insights to Improve - The purpose of effective property management software is to improve. To enhance service speed and quality, control expenses, increase tenant happiness, and maintain the quality and safety of equipment and the property itself. The program should give the tools and insights required to do this.
• ‍Customized Templates - A decentcommercial property inspection report software should provide adjustable templates that enable you to personalize the inspection form to your requirements. This guarantees that you can collect all of the relevant information throughout the inspection procedure.
• ‍Photo and Video Capture - A property inspection app must have photo and video capture functionalities. This allows you to collect photographic inspection documentation of any damages or faults discovered during the examination. It also helps in providing transparency to renters and landlords.
• ‍Automated Reminders - Automated reminders assist to guarantee that inspections are completed on time, lowering the probability of missed inspections. This tool may help remind renters to prepare their apartments for inspection, making the process more efficient.
• ‍Cloud-Based Storage - If you have an internet connection, you can view inspection results from anywhere, at any time. This feature also boosts data security since reports are safely saved in the cloud.
• ‍Electronic Signatures - Eliminate the need for paper signatures on inspection reports, making them more convenient to use. This function also saves time by eliminating the need to scan or email signed papers.
• ‍Data Analysis and Reporting - A decent property inspection app should have data analysis and reporting features. This function helps you to spot patterns and trends in inspection reports, allowing you to make educated choices regarding property upkeep and repairs.

Benefits of Using a Commercial Property Inspection App

Apps for commercial property inspection report software are becoming more popular among property managers, landlords, and renters. The following are some of the advantages of utilizing property inspection apps:

Time-Saving

When compared to conventional paper-based procedures, using property inspection applications saves time. Inspections can be completed more rapidly, reports can be generated promptly, and all data can be stored in one location.

Improved Precision

Property inspection applications allow you to be more precise in your examinations. You can take photographs and videos to offer  inspection documentation of damages, as well as write notes to ensure that nothing is overlooked during the inspection.

Cost-Effective

For property managers and landlords, using property inspection applications is a cost-effective alternative. There is no need to spend money on printing paper forms or employing extra workers to assist with data input.

Increased Communication

It improves communication among property managers, landlords, and renters. You may share inspection reports and images with renters, giving them transparency and a clear knowledge of the property's status.

Mobile Access

You can access your property inspection reports from anywhere, at any time, as long as you have an internet connection. This makes remote property management and inspection tracking much easier.

Enhanced Efficiency

Finally, property inspection applications can assist you in enhancing productivity and efficiency. activities like scheduling inspections, issuing reminders, and creating reports can all be automated, freeing up your time for other important activities.

Future of Inspection Reporting

Digital Checklists & Automated Inspection Reporting

Field inspection reports must be accurate, precise, and readable. For remote or third-party inspections, the quality of inspection reports is critical. The use of digital checklists, mobile devices for field inspections, and automated reporting is aimed at addressing this issue.

Paper-based field inspections are more prone to mistakes than digital checklist inspections. It is simply because ten separate inspection carriers can generate ten different result reports for the same field inspection, and data is not always reported appropriately. 

Configurable Workflow Integration

When self-service modules, AI-assisted risk scoring, digital checklists, and outcome reporting are stated together, they seem like minor components of a larger platform. 

The fact is that the digital transformation plan cannot be expedited in a week. Especially when it comes to regulatory authorities and inspectorates.

AI Capabilities

The availability of a self-submission site is a starting point for gathering digital user data.  Inspection carriers must swiftly make excellent use of this data to undertake successful remote field inspections. This is where AI algorithms can shine.

Xenia - The AIO Commercial Building Inspection & CMMS Solution

Xenia is a comprehensive frontline commercial property inspection report software that consolidates key elements of computerized maintenance management systems, safety inspection platforms, and deskless team operations software into one unified platform.

With a robust checklist builder, Xenia, the best app for commercial property efficiently handles building inspections, allowing for the inclusion of processes, pass/fail assessments, text and numeric inputs, picture attachments, and remarks. During usage, failed inspection points are promptly noted for quick examination, while successful inspections are stored in a log view for easy review and an audit trail.

The task and work order system for property management in Xenia facilitates the distribution of inspection checklists to team members, keeping track of essential parameters such as category, priority level, and time to completion. Managers can monitor progress in real time and engage with employees within each job through an integrated chat system.

Key Features

• Customizable Inspection Templates: Tailor inspection templates to match various property types and inspection requirements. Modify templates according to changing regulations or specific property needs.
• Task and Issue Tracking: Create work orders and establish priority levels for prompt issue resolution. Track assigned tasks to monitor issue resolution progress and timeline efficiently.
• Tenant Request Management: Simplified resident app for requesting, tracking, and chatting about work orders. Share live progress with tenants and communicate through integrated chats.
• Asset Work History: Access a comprehensive asset work history, complete with all associated work. Monitor asset health over time, identifying patterns, and predicting future needs.
• In-App Chat: Centralize communication for teams with one-on-one messages, group chats, and more!

Final Thoughts

And from there, it’s up to you – save your money or turn a profit. Whatever decision you make, it's influenced by the valuable insights of a commercial property inspection.

Should you choose to bite the bullet and make a purchase, you'll need to take care of some repairs. This is where commercial property inspection report software like Xenia may come in handy.