Property Condition Assessment Process
A property condition assessment is without doubt the most vital part of performing due diligence when purchasing commercial real estate. The report will inform you of the major issues regarding the present physical condition of the property and the expenses that may be necessary to correct existing issues and those that may be encountered over the next five years of property ownership.
The American Society of Testing and Materials, now known as ASTM International, developed a national standard for performing a property condtition assessment. The current standard is ASTM E2018-15. To ensure that your due diligence is being performed properly and thoroughly, you should require that the assessment meet this nationally accepted standard.
Property Condition Assessment, Inc. follows this standard practice and can provide one of three levels of written reports, tailored to your needs.
A property condition assessment is recommended for those companies who are entering a NNN lease to determine the existing property condition and what costs can be anticipated over the next five years, or the expected duration of the lease.
A property condition assessment can provide a property owner with an independent assessment of the current condition of a property to aid in developing a capital expenditure plan to maintain or improve the property.
Major Components of a Property Condition Assessment
Site - storm water system, paving, exterior lighting, landscaping and irrigation
Structure - concrete, steel and wood components of the building
Building Envelope - roof, sidewalls, paint, insulation, windows, doors
Utilities - water, sewer, electric, natural gas
Plumbing System and Fixtures
Electrical System and Components
Heating, Ventilation, and Air Conditioning System and Components
Fire Protection and Life Safety Systems
Interior Finishes - floors, walls and ceilings