Buying or Leasing a space unit or building for commercial, industrial or manufacturing purposes has hidden risks and economic burdens associated with it.  These typically consist of the following either individually or in combination:

1. System / subsystem functionality
2. System / subsystem compliance
3. System / subsystem capacity

Once you sign off on a lease or purchase, you or your company will be legally and financially responsible for any shortcomings or the issues that could arise from any of the above categories listed.

An investment group purchased a small commercial complex in the west side of Vancouver with the lease of a McDonald’s restaurant to become the anchor.  Without having relevant representation through the purchase, when McDonald’s closed their lease, they put forward the need for a service capacity of 150kVA at 120/208 3-phase 4W.  The problem the ownership group now faced was an existing service at 100kVA at 120/240 single-phase 3W for the whole complex.  With the lease being done, the group was on the hook to upgrade the main service to 300kVA 120/208 3-phase 4W.  Our final cost for this upgrade was approximately $80,000.

We were a consulting FSR to an office tower downtown Vancouver.  The Ministry of Finance of the BC government had just acknowledged intent to lease the second floor and as part of that the landlord was required to contribute financially to their lighting requirements.  The space had been demolished back to base building.  We proceeded to prepare the lighting specifications based on the BC government requirements.  Through this process we had several communications with the representative for the Ministry of Finance and on one of those occasions they had identified numerous non-compliant and unsafe hazardous conditions.  My comment back was “you think” as I was aware of all this.  I advised them to forward a letter of concern to the landlord.  

There is a push, expectation and municipal requirements to become electrified.  After the communication between the Minister of Finance and ownership, we were retained to lso provide a specification to bring the second floor to current compliance.  Once specification was tendered the scope of work was executed and the Minister of Finance was cleared of any compliance and financial liabilities.

Besides the electrification of vehicles, heating by gas will continue to become more prohibitive by cost, surcharges and mandates.  This will require much heating to become electrically based, requiring considerably more capacity.  In the pursuit of a lease, sub lese or ownership, your due diligence is critical to the bottom line:

1. That all regulated equipment is compliant
2. That all regulated equipment is functional
3. That all regulated equipment has the capacity for your needs today and tomorrow
4. The specifics of voltages ad phases required