When you invest in a commercial property, you should always order a property condition assessment (PCA) as part of your due diligence process. The PCA (also called a “facility condition assessment” or FCA) is the commercial equivalent of the home inspection. Because of the relative complexity and size of the commercial investment, however, it is usually much more detailed and includes information that the typical home inspection does not.
Use the three checklists below to ensure that your PCA includes all of the information you need to make an informed investment. For each item on each checklist, the PCA should include:
- A brief description of each component
- An identification of any deficiencies discovered
- A table of costs to correct the deficiencies
Exterior Component Checklist
Interior Component Checklist
Systems Checklist
Because every building is unique, you should add to each checklist any additional components that are unique to your building type (such as exhaust systems in an industrial/manufacturing building). It’s important to note, however, that a baseline PCA will generally not include inspection of anything that requires destruction (such as removing wall tile to inspect wall framing).
At GLE Associates, we have been conducting property and facility condition assessments for more than twenty years in every building-type imaginable, including hospitals, educational, commercial, industrial, residential, and government facilities. Our team of cross-disciplinary professionals would be happy to assist you with your next purchase.
