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Updated almost 7 years ago,

User Stats

129
Posts
69
Votes
Joseph Parker
  • Real Estate Agent
  • Kokomo, IN
69
Votes |
129
Posts

HVAC on Commercial Office/Retail Properties

Joseph Parker
  • Real Estate Agent
  • Kokomo, IN
Posted

Making an offer this week on a 5-unit property (could be six units, currently set up as five, all occupied), consisting of two separate buildings in my town. Total square footage around 5,900.

Each building has three separate gas furnaces and A/Cs. So six total. I know that two of them have been replaced in the past five years or so, and plan to have those and the remaining four inspected if the purchase moves forward.

Being my first commercial property that is not multifamily, I'm looking for any advice or tips when it comes to checking out these major systems while under contract. Obviously, the idea of six separate systems somewhat terrifies me simply due to the cost incurred when repairing/replacing these. I understand why each unit has it's own system (each has it's own environment), but what kind of negotiating tactics has anyone found successful if/when an inspector notes that the older units are in rough condition? Do I treat it as if I were purchasing a home and ask for a price reduction/credit towards those systems if they are in poor condition?

Just thinking ahead here!

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