Commercial real estate is a huge investment, and just like when buying a house, it’s a good idea to get an inspection completed on a commercial property. If you’re considering purchasing the property, hire an inspector who is trained and certified to look for issues with the property and prepare the findings in an ASTM formatted report. This will give you a better idea of the future costs associated with the building – and whether or not to walk away from the deal.
What is a Property Condition Assessment?
A Property Condition Assessment (or “PCA”) is an unbiased commercial real estate due diligence assessment that is useful for sellers, buyers, lenders, commercial property owners, investors, and insurance agencies. The outcome of the PCA is referred to as a Property Condition Report (or “PCR”). The information in a PCR is vital for forecasting expenses when preparing to purchase commercial real estate, maintaining a property that you already own, and more.
What are the benefits of a Property Condition Assessment?
There are various reasons for having a PCA completed for a commercial property, depending on the parties involved:
- Negotiating the sale price of a commercial property, for the potential buyer of commercial real estate.
- Approval of a loan, for the commercial real estate lender.
- Insurance evaluations, for either the owner of the property or insurance agency.
- Forecasting future maintenance costs or capital/strategic planning, for the owner of the property.
- Triple-Net Leases, for either the commercial landlord or tenant where the tenant is responsible for building maintenance and repair.
John Brewster is the Northeast field inspector for WB Treece Consultants.
WB Treece Consultants is fully trained and certified to inspect commercial properties based in Raleigh, Charlotte, with field inspectors located throughout the country. At True North Home Inspection we provide a comprehensive PCR. We follow the industry accepted standards of ASTM E2018 and CCPIA.