Commercial Building Inspection
Property Condition Assessments
Property condition assessments (PCAs) (also known as the property condition report, or PCR) are due diligence projects associated with commercial real estate. Commercial property and building inspections are important for clients seeking to know the condition of a property or real estate they may be purchasing, leasing, financing or simply maintaining. Commercial building inspectors follow industry accepted guidelines of ASTM E2018 or the International Standards of Practice for Inspecting Commercial Properties. These commercial inspection standards help both the commercial building inspector and the client to understand the scope agreed to for the inspection, including the systems or areas to be inspected, and is used as a guide to develop said scopes and procedures. Often, they are done as part of a property transfer and are done along with a Phase I Environmental Site Assessment. PCAs are not to be confused with facility condition assessments, which are similar in nature but serve a different purpose.
Depending on client needs or accepted risks, and property types, some inspections can require the involvement of specialists, and some can be done by a general commercial building inspector or engineer. Each varying degree of review or assessment will involve various costs and time frames.
Once the PCA is completed, a written report is compiled and delivered to the client within an acceptable time frame. The report may include such items as concerns observed, recommendations for repairs or further inspections, opinions of the cost of future capital projects, and Americans with Disabilities Act (ADA) compliance surveys.
Commercial Inspection Process
Commercial Inspection Process
“The process of an inspector collecting information through visual observation during a walk-through survey of the subject property, conducting research about the property, and then generating a meaningful report about the condition of the property based on the observations made and research conducted by the inspector.”
Commercial building inspections are more important than you think. They are not just for new construction projects, either. A commercial building inspection is a key part of ensuring that your business continues to operate safely and efficiently daily.
Inspections can establish the baseline functionality of the building’s structure, check for any health and safety violations, or uncover potential hazards that could put tenants and building occupants at risk. But most importantly, an inspection can validate stakeholder decisions about upgrading or repairing specific aspects of the property while helping you to coordinate with contractors to resolve matters efficiently.
How are commercial Inspections Different from Residential Inspections
What is a PCA (Property Condition Assessment) in commercial property?
A Property Condition Assessment, also known as a Property Condition Report or Commercial Building Inspection, is an evaluation of a commercial real estate asset based on a thorough inspection, including all improvements and all the systems of each building on the property. Like a home inspection, a property condition assessment helps a prospective owner assess a commercial building instead of a residential one. PCA (Property Condition Assessment) reports are more robust and detailed than a standard residential home inspection, covering the multiple systems, equipment, and spaces in a commercial property. Current conditions of assets (such as roofing, mechanical, plumbing, structural, and lighting) Forecast of each asset’s effective age and estimated lifespan. Cost analyses and timelines to help you build your capital budget.
The operational differences between a home inspection and a PCA
A home inspection is more invasive and specific in terms of material used, operation, age and or size of the different systems found in the home at the time of inspection, and the report is written on-site, as to the conditions and recommendations found during the inspection. A PCA is more of an overview of the general condition of a commercial property. The PCA is less invasive, and more time is spent on writing a detailed report on your opinion of the condition of the property and providing a cost analysis over a timed period.