Efficient Business Guide: What to Look for When Buying a Commercial Space

When you’re buying a commercial property, there’s a lot to consider. Energy efficiency is an important factor that will impact your business’s bottom line. 

Even if the building currently needs some energy upgrades, your investments will likely pay off with a higher property value down the road. 

Here are a few things to keep an eye out for when you’re looking for a commercial property.

Ask for Past Utility Bills

Ask the realtor if you can see past utility bills, which will give you a real-world snapshot of what it costs to run the building. Keep in mind that your energy costs might differ from the current owner’s costs. For example, an office uses energy very differently from a restaurant, but it will at least give you a starting place. 

The other thing you’ll want to understand is the building’s electric rate structure. Some commercial buildings have demand charges or time-of-use rates that can impact your monthly bill.

Understand the HVAC System

Heating, cooling, and hot water systems are often some of the biggest monthly expenses for a commercial building. Make sure you understand what kind of HVAC equipment is in the building, what kind of fuel it uses, and how old it is. Natural gas is typically the cheapest fuel, while electric resistance baseboards are the most expensive to run. Meanwhile, heat pumps are an effective choice for both heating and cooling in all-electric buildings. 

Since you’ll be on the hook for repairs and maintenance, make sure you know how old the systems are and whether they need to be replaced in the near future. If the equipment is nearing the end of its life, you’ll have to plan for a replacement. Since HVAC systems typically last 15 years or more, choosing an efficient model will pay dividends into the future. 

Consider an Inspection

Just like you’d get an inspection before buying a home, it's worth considering a commercial building inspection. A commercial inspection assesses standard items, such as the building structure, insulation, and mechanical and electrical systems. It also assesses compliance with building codes and other laws that may apply to your business, such as ADA accessibility requirements or zoning regulations. 

If possible, try to attend the inspection so you can ask questions and learn more about the building. 

Get a Handle on the Insulation

A well-insulated, air-sealed building can cost much less to heat and cool. It can be hard to evaluate the quantity and quality of insulation without being able to see behind the walls, but there are some clues. 

Look at the condition of the windows and doors. Large storefront windows can be great for visibility and passive heating, but they can also increase your energy costs if they’re old and leaky.

If you feel drafts around windows and doors, it could be a sign that the space needs more insulation. You might be able to add inexpensive solutions like weather stripping or caulk.

Look up at the roof. If it’s winter and you see icicles or ice dams, that might be a sign that the building needs more insulation. 

Look at Lighting

LEDs have become the standard for good reason: they last longer and cost much less to run than older lighting. If the building still uses fluorescent or incandescent lighting, you might want to budget to replace it sooner rather than later. 

Get Started

Buying a commercial space is a big step. By reviewing past energy use, evaluating key systems, and identifying opportunities to improve efficiency, you’ll make a more informed decision and set your business up for lower long-term operating costs.

Efficiency Smart can help answer your questions about energy efficiency in commercial buildings. Call us at 877-889-3777 or email us at [email protected].