The UK real estate sector has reached a tipping point. Goldman Sachs recently forecast that by the end of 2024, UK commercial property prices could fall by up to 20%.

Whilst a market correction wasn’t unforeseen, rising interest rates, increased borrowing costs and forced institutional sellers, with the backdrop of EPC changes in 2023 and onwards, has meant the sales process needs to be swift and hassle free. But can sellers (and their agents) do so within short timeframes to complement a smooth transaction without leaving themselves open for unforeseen questions and a further price chip?

When it comes to acquiring and selling assets in a distressed market, time is of the essence. This is where good quality, comprehensive vendor surveys really come into their own.

By collating all the due diligence documentation before the property goes to market, all parties involved in transactions benefit from having everything out in the open. Sellers can identify any issues early on and ‘put their house in order’ while buyers avoid the need for surveys to be carried out by their own teams, mitigating risk and saving time in the process.

However, when it comes to vendor surveys, not all are created equal. What differentiates a good quality, comprehensive vendor survey from the rest is those that give full scope of a building with a full risk profile and are carried out by independent experts with the necessary skills and competence to provide sound, reliable input on a range of key technical issues such as environmental, lift condition, cladding, fire safety and mechanical and electrical engineering.

A good quality survey, such as those undertaken by us here at Hollis, will show that all aspects of the building have been considered and solutions provided alongside any issues.

Where a poor survey may omit repair costs, a good quality one will take a detailed look at existing leases and outline any costs and associated liabilities that buyers should be aware of, such as any upcoming ESG EPC deadlines and updates required, dilapidations and reinstatement as well as any clauses and limitations which prevent the landlord from recovering costs in certain situations.

At Hollis, we can go one step further by helping buyers, sellers and asset managers view a building remotely before, during and after transactions through a virtual tour which includes all the technical due diligence information (building survey, area referencing drawings, M&E, lease plans, ESG information etc.), as well as highlighting any risk areas.

Our virtual due diligence is all about ease and efficiency. The virtual survey is carried out in tandem with the TDD inspection enabling quicker inspection times and avoids the need to sift through separate reports to find the information you want. It also reduces the need for multiple teams to go to site, saving time and money and allowing the whole transaction team to view the data remotely, from anywhere in the world.

With rising pressure for real estate transactions to go through quickly in these uncertain, fast-moving market conditions, undertaking a commercial survey that you can rely on is worth it.