Are you looking to purchase, finance, rent, or maintain a commercial real estate building? If so, you may want to learn more about property condition assessments. If you aren’t exactly sure what it is or why it is important, then you’re in the right place!
What is a property condition assessment?
A Property Condition Assessment (PCA), also known as a Commercial Building Inspection or a Property Condition Report, is a powerful evaluation of a commercial real estate asset. This investigation is based on a thorough inspection, including all improvements needed. In essence, it provides a true financial overview of the property.
By performing a PCA, you can acquire details of the building that you may be investing in. The last thing you want is to do is make a large capital investment in commercial property to then later find out the building was poorly maintained and is in need of serious repairs.
PCA’s are typically performed as part of a property transaction but are also performed to determine the property’s current state.
Why are property conditions important?
Let’s look at the scenario when you are buying a residential property. When you buy a house, it is advised to conduct an inspection prior to purchasing. The same thing applies to a commercial real estate building.
PCA’s consist of a professional visiting your property; in most cases, this is or should be an engineering expert specializing in PCA’s. The expert will inspect the building and document any repair recommendations, concerns, and provide a report on the overall cost of all the adjustments needed. In some cases, they can also request for further inspections on the property.
What is included in a property condition assessment?
This assessment gives you an overview of the building’s condition, and you can analyze the issues you need to look at now, and the ones that may be coming down the road.
Here is what generally is included in a PCA:
- Interior of the building. Which includes tenant’s areas as well.
- Mechanical elements like elevators, air conditioning, heating, plumbing, etc.
- Ensuring Fire safety procedures and any other safety regulations are in place.
- Certify that the property has the required signage, fencing, irrigation, landscaping etc
- The building’s exterior aspect is up to par, which includes the roof, walls, stairs, and doors.
Orangeville Building Inspection and Engineering Services
As you know, commercial real estate owners and managers, institutional investors and investment bankers have different objectives for their real estate portfolios. Criterium Jansen Engineers work with clients to understand those objectives, develop scopes and formats that will serve their objectives, and deliver high-quality reports.
Our reports contain information about a structure and its components – vital to investment and financial decision-making.