What You Need to Know About Commercial Electrical Issues
69% of Our Clients Are Concerned About Commercial Electrical Systems — Here’s What You Need to Know
When clients reach out to schedule a commercial property inspection, 69% tell us they’re concerned about the building’s electrical system. And it’s a valid concern—electrical issues are among the top contributors to building fires, operational downtime, and costly repairs.
In this post, we’ll explore:
Why electrical systems are a leading concern for commercial buyers and owners
5 of the most common electrical issues we uncover
What our commercial electrical inspection includes
How to minimize risk and plan for upgrades
Let’s break it down.
Why Are Clients So Concerned About Electrical Systems?
Electrical infrastructure is the beating heart of any commercial building. When something goes wrong, it doesn’t just affect lights and outlets—it can shut down HVAC systems, security panels, elevators, and server rooms.
Here’s why this system is high on the worry list:
1. Safety Risks Are High
Faulty wiring, outdated components, and overloaded panels are some of the top causes of commercial building fires. These risks are invisible to the untrained eye but can be catastrophic when left unaddressed.
2. Code Compliance Is Complicated
Electrical codes evolve over time. Buildings constructed or renovated decades ago often lack current code-compliant wiring, GFCI/AFCI protection, or labeling—all of which can delay transactions or trigger insurance issues.
3. Repairs and Upgrades Are Expensive
A full panel replacement or rewiring job in a commercial space can cost thousands to tens of thousands of dollars. Buyers want to know: Is this building a ticking time bomb?
4. Electrical Needs Change with Use
What worked for a quiet office in 1995 may not be sufficient for today’s server-heavy business or restaurant. Buyers want to know if the system can support their plans.
5 Common Electrical Issues in Commercial Buildings
Through hundreds of inspections, we’ve documented recurring electrical issues that carry real safety and operational implications.
1. Outdated or Undersized Panels
It’s common to see original panels that no longer meet the electrical demand of the current occupants. Fuse panels, Federal Pacific, or Zinsco panels are especially concerning due to known fire risks.
2. Improper Wiring Practices
We regularly find loose wires, double-tapped breakers, exposed splices, and missing junction box covers. These are often the result of unlicensed or DIY repairs.
3. Missing or Improper Grounding
Without proper grounding, there’s no path for stray electricity to safely dissipate. Ungrounded outlets and improperly bonded systems increase the risk of shock or fire.
4. Lack of GFCI/AFCI Protection
Current electrical codes require ground-fault and arc-fault protection in specific areas. Older buildings rarely meet these requirements, leaving occupants at risk of electrocution or arc-related fires.
5. Inadequate Labeling
Panels with missing, incorrect, or unclear circuit labels are more than just a nuisance—they’re dangerous. In an emergency, unmarked panels delay first responders and repair crews.
What Our Commercial Electrical Inspection Includes
A thorough inspection of the electrical system is a cornerstone of our commercial property evaluations. While we don’t perform invasive or load-based testing, our visual and functional inspection provides vital insights.
✔ Electrical Panel Assessment
We inspect all accessible main and subpanels. This includes checking for proper bonding and grounding, looking for overheating or corrosion, noting improper wire terminations, and documenting the panel brand and age.
✔ Load Center & Capacity Review
We examine whether the panel's amperage appears adequate for the building’s size and usage. We note signs of overload or circuits added without expansion.
✔ Outlet & Switch Testing
We test a representative number of outlets and switches to ensure they are properly wired, functional, and protected where required.
✔ GFCI & AFCI Protection Check
We confirm the presence and operation of ground-fault circuit interrupters (especially in kitchens, bathrooms, exterior areas) and note the absence where they should be installed.
✔ Visible Wiring Review
We observe accessible wiring types (e.g., Romex, BX, conduit), look for frayed or damaged wires, and check for unprotected or exposed runs that violate safety standards.
✔ Lighting, Fixtures, and Exterior Electrical
We inspect lighting in common areas, stairwells, parking lots, and exits. Exterior receptacles and lighting must be weatherproof and properly grounded.
✔ Opinion of Cost & Safety Notes
If we discover unsafe components or outdated systems, we provide a non-binding Opinion of Cost to upgrade and outline our concerns clearly for your decision-making process.
How to Stay Ahead of Electrical Issues
While many clients are rightly worried about electrical systems, the good news is that many issues are preventable or manageable with awareness and proactive planning.
➤ Schedule Periodic Electrical Inspections
Especially in buildings over 30 years old, a licensed electrician should assess the system every 3–5 years to catch degradation before it leads to failure.
➤ Avoid Overloading Circuits
Adding too many devices to a single circuit stresses wiring and breakers. Commercial kitchens and server rooms are common overload points.
➤ Label Your Panels Accurately
Take the time to map out which breakers control which areas. In an emergency, this can save time and prevent damage.
➤ Upgrade Aging Systems
If your building has knob-and-tube wiring, aluminum wiring, or outdated panels (especially Federal Pacific or Zinsco), plan for full replacement. These systems have long exceeded safe service life.
➤ Hire Licensed Electricians Only
DIY work and handyman installations are major contributors to electrical hazards. Ensure all upgrades, additions, and repairs are done to code by a qualified professional.
Conclusion: A Safe Building Starts With a Safe Electrical System
A functioning electrical system isn’t enough—it needs to be safe, sufficient, and scalable for your property’s future use. At Focus Building Inspections, we take electrical concerns seriously. Whether you’re buying, selling, or just planning for upgrades, we’re here to help you understand the state of your building’s infrastructure.
Need an Electrical System Checkup?
Electrical systems are the silent backbone of every commercial building—but they shouldn’t be a silent risk. With 69% of our clients concerned about electrical issues, it’s time to make your system a priority.
At Focus Building Inspections, our commercial electrical evaluations reveal safety concerns before they become liabilities. From outdated panels to hidden fire hazards, we help you understand what you’re working with—so you can move forward with confidence. Don’t leave safety and liability to chance.
Questions This Article Answers
Why are electrical systems a top concern in commercial property inspections?
What safety risks are associated with outdated or faulty electrical infrastructure?
How can electrical code violations affect insurance, sales, and operations?
What are the financial implications of electrical repairs or upgrades?
How do changing business needs affect the suitability of existing electrical systems?
What are the five most common electrical issues found in commercial buildings?
What does a commercial electrical inspection from Focus Building Inspections include?
What proactive steps can building owners take to minimize electrical risks?
Why is panel labeling critical for safety and emergency response?
When should commercial properties schedule recurring electrical inspections?
Bibliography / Resources
International Association of Certified Home Inspectors. (n.d.). Electrical inspections. InterNACHI. Retrieved April 25, 2025, from https://www.nachi.org/electrical.htm
National Electrical Code. (2023). NEC overview and code updates. National Fire Protection Association. Retrieved April 25, 2025, from https://www.nfpa.org/nec
National Fire Protection Association. (2022). Top causes of electrical fires. NFPA. Retrieved April 25, 2025, from https://www.nfpa.org/News-and-Research/Publications-and-media/Press-Room/Reporters-Guide-to-Fire-and-NFPA/Top-Fire-Causes
Occupational Safety and Health Administration. (n.d.). Electrical safety standards for general industry (29 CFR 1910 Subpart S). OSHA. Retrieved April 25, 2025, from https://www.osha.gov/electrical
U.S. Fire Administration. (2023). Electrical fire safety for commercial buildings. FEMA. Retrieved April 25, 2025, from https://www.usfa.fema.gov/prevention/outreach/electrical.html