Buying a commercial property is a significant investment. Surveys, structural assessments, and legal due diligence all rightly get a lot of attention, but one area that’s frequently underestimated by even experienced landlords and developers is the state of the electrical installation.
Electrical issues that aren’t identified before exchange can turn into costly surprises after completion. Here’s what to look out for, and why getting an independent electrical assessment before you commit could save you a significant amount of money.
Why Electrical Due Diligence Matters More Than You Think
Unlike a damp problem or a roof in poor condition, electrical issues are largely invisible. They’re hidden behind walls, above ceilings, and inside distribution boards and they won’t show up in a standard structural survey.
Yet the cost of addressing serious electrical deficiencies in a commercial property can run into tens of thousands of pounds. For a landlord or developer planning to let or refurbish a property, that’s a material cost that should be factored into your purchase price not discovered after you’ve already committed.
1. Ask for the Existing EICR
The first thing to request from any vendor is the most recent Electrical Installation Condition Report (EICR). This is the formal assessment of the property’s electrical installation, carried out by a qualified electrician.
A current EICR will tell you:
- The overall condition of the electrical installation
- Any faults or deficiencies identified, coded by severity
- When the next inspection is due
If the vendor can’t produce a valid EICR or if the existing one is out of date treat that as a red flag and commission an independent inspection before proceeding. For commercial properties, EICRs should be renewed every five years; for industrial premises, every three.
2. Check the Age and Condition of the Wiring
The age of the electrical installation is a key indicator of what you might be taking on. Wiring installed before the 1980s may use materials and methods that no longer meet current standards and in some cases, that present a genuine safety risk.
Signs to look out for during a viewing:
- Old-style round-pin sockets or Bakelite fittings
- Wiring in rubber or fabric insulation (rather than modern PVC)
- A fuse box rather than a modern consumer unit or distribution board
- Evidence of piecemeal additions or repairs over the years
None of these are necessarily deal-breakers, but they all point to an installation that may need significant investment to bring up to current standards.
3. Assess the Supply Capacity
This is particularly important for landlords and developers planning to let the property commercially or industrially. The existing electrical supply may simply not be adequate for the intended use.
Key questions to ask:
- Is the property served by a single-phase or three-phase supply?
- What is the current supply capacity (in amps)?
- Is there room in the distribution board for additional circuits?
- Has the supply been upgraded in recent years?
If you’re planning to let to a tenant with significant power requirements manufacturing, food production, data-intensive operations a supply upgrade may be needed before the property is fit for purpose. Connecting a new or upgraded three-phase supply involves working with the Distribution Network Operator (DNO) and can take several months to arrange, so it’s worth factoring into your timeline early.
4. Consider Your Compliance Obligations as a Landlord
Once you own the property, the legal responsibility for electrical safety sits with you. Under the Electricity at Work Regulations 1989, you have a duty to ensure the electrical installation is maintained in a safe condition. For tenanted properties, this means keeping on top of periodic inspections and addressing any issues promptly.
It’s also worth being aware of tightening Minimum Energy Efficiency Standards (MEES) commercial properties will need to meet EPC C by 2027 and EPC B by 2030. The electrical installation plays a role in EPC ratings, and upgrades such as LED lighting and improved controls can help you meet these requirements cost-effectively.
5. Get an Independent Pre-Purchase Electrical Assessment
The most effective way to protect yourself is to commission an independent electrical assessment before exchange. This gives you:
- A clear picture of the installation’s current condition
- An understanding of what remedial work is required and at what cost
- Leverage to renegotiate the purchase price if significant issues are found
- Peace of mind that there are no hidden surprises waiting for you after completion
An experienced commercial electrician can carry out this assessment quickly and cost-effectively and the fee is a fraction of the cost of discovering a major electrical deficiency after you’ve completed.
How Arrow Electrical Services Can Help
At Arrow Electrical Services, we regularly carry out pre-purchase electrical assessments and EICRs for commercial landlords and developers across Cheshire and the UK. As NICEIC approved contractors, we provide clear, detailed reports that give you the information you need to make confident purchasing decisions.
Whether you’re assessing a single unit or a multi-site portfolio, we’ll give you an honest, professional assessment.
Arrow Electrical Services provide specialist industrial, commercial and Atex Electrical design, installation and maintenance solutions as well as manage projects across multiple trades using trusted specialist contractors across the UK.
Contact Us
Based in Chester, our experienced team operates nationwide.
Our Location
Deva Court,
Lightfoot St,
Hoole,
Chester
CH2 3AD
Call us at 01244 830 419 or submit the contact form to enquire.
Opening Times
Monday – 7:30am to 5:00pm
Tuesday – 7:30am to 5:00pm
Wednesday – 7:30am to 5:00pm
Thursday – 7:30am to 5:00pm
Friday – 7:30am to 5:00pm