PROPERTY CONDITION ASSESSMENTS
The purpose of a Property Condition Assessment (PCA) is to observe and report on the physical condition of the subject property and to provide professional recommendations regarding immediate and future issues including financial risk or liability to the client.
In a Property Condition Assessment, all major structural, electrical, plumbing and HVAC components of each structure, as well as site improvements, are carefully examined for apparent age, condition and extent of defects, and sustainability. Our team reviews all available documents and conducts walk-through surveys noting the physical condition of the building systems. The information gathered is then compiled into a Property Condition Report (PCR).
Systems surveyed in a Property Condition Assessment will include the following:
SITE & GROUNDS
Pavement, curbs, loading docks, walks, landscaping, irrigation, site drainage, exterior lighting, walls, fencing/railings, signage and most exterior amenities (we may recommend and facilitate professional evaluation for specialty amenities at an additional cost).
Foundations and structural framing of walls, columns, intermediate floors, attics, and roofs.
Roofing systems, exterior finishes, stairs and steps, exterior doors and windows.
Interior finishes of common areas and tenant areas (Condition of personal
properties and process equipment will not be assessed).
Property-owned electrical, heating ventilation/ air conditioning, plumbing and conveyance systems.
A general visual evaluation of life safety, fire suppression systems, and general compliance to the Americans with Disabilities Act (ADA) are conducted, but it should be known that a PCA is not a code compliance inspection.
For an additional fee, Liberty can also contact the local building, zoning, and fire department/authorities to identify any currently outstanding building or fire code violations at the subject property.
Upon completion of the physical property condition assessment, Liberty Consultants will provide a Property Condition Report (PCR) outlining the systems and components along with any deferred maintenance or deficiencies observed. The report includes a formulated a list of immediate repairs (significant safety concerns and deterioration to the building caused by deferred maintenance), as well as costs that will be incurred during the initial ownership period (typically 5 years). This schedule allows the client to plan for large expenditures in advance.
Liberty can also facilitate ancillary evaluations, such as ADA compliance inspections and Phase I environmental surveys.
A PCA differs from a standard commercial property inspection in that its primary focus is determining the major immediate and short-term financial expenditures that can be expected when purchasing a given property. It is a systems-based evaluation, concerned with the major systems in a structure, and the associated costs to repair or replace the defective components. This financially driven condition assessment is useful for buyers or lenders to better understand their investment.
Alternately, a standard commercial inspection is more fixture-based, concerned less with the financial investment, and more with the usability of a building. A standard commercial inspection may be preferred by owner-tenants, as they will get a better scope of the day to day operation of a building, but is not as useful to lenders or investors, whose interests are only financial.