Property condition assessments (PCAs) are one of the most important due diligence tools for commercial real estate deals. PCAs reveal important information about a site’s condition. For a business owner, the PCA can help you make an informed decision about whether to buy a property.
The information gathered during a PCA is compiled in a document known as a Property Condition Report, or PCR. However, not all reports are made equal regarding clarity and thoroughness. You must seek a firm that delivers proven results when providing PCA report real estate services. RSB Environmental is that firm.
Learn more about PCAs, what they are, why you need a PCR report, and which parts of the PCR to pay special attention to.
What is a PCA?
A PCA examines a commercial property’s various systems. The accompanying PCR offers insight into a property’s current condition. It also provides an estimate of how much capital will be needed to maintain or repair a property.
A PCA is divided into four components, which include:
- Building evaluation
- Building systems evaluation
- Site improvement evaluation
During the fieldwork phase, our team will:
- Conduct a site assessment
- Carry out interviews
- Contact the city building department
From there, we’ll move on to the building evaluation, which involves an examination of the following aspects of a site:
- Roof diaphragm
- Interior finishes
- Building envelope
We’ll also inspect all central building systems. We will focus on the following areas:
- Fire suppression
- Data and phone lines
Finally, our team will evaluate various site improvements, including the following aspects:
- ADA accessibility and compliance
The scope of the PCA is quite extensive. This ensures that any relevant concerns are discovered during the assessment. Once we’ve completed our evaluation, we’ll compile all our findings in a detailed PCR.
The PCR will help you determine how much capital you need to bring the building into compliance. It will also highlight potential concerns that don’t require immediate attention but may become a problem in the future.
What Red Flags Should Owners Be Wary Of?
PCRs are long, detailed, and highly technical documents. Fortunately, it’s not necessary to read every page line by line. Instead, you can simply focus on the executive summary section, which includes a concise list of concerns identified during the PCA.
Pay particular attention to any heavy equipment issues. For instance, HVAC or roofing concerns should catch your eye, as repairing these systems can be costly. You’ll also want to pay attention to any issues that pose a risk to the building’s occupants or impact the usability of the building.
Are PCA Findings Time-Sensitive?
We are often asked how quickly to act on the findings of a PCA. In order to remain compliant and make any future deals legal and legitimate, you must resolve any major issues within 12 months.
A few examples of these types of issues include the following:
- Malfunctions that create health hazards
- Safety concerns
- Fire hazards
If these issues aren’t resolved, you could incur fines from the city or state, have your permits revoked, or face other penalties.
Why You Need a PCA
PCAs help to assess the cost of buying a commercial property. If a site requires hundreds of thousands of dollars in repairs, you may decide it’s not the right purchase for your portfolio.
PCAs can also be a great negotiating tool. You can use PCA data to haggle with sellers over the purchase price or ask them to cover the costs of certain repairs, so you don’t have to absorb all of the built-in expenses yourself.
Need a PCA Report for Real Estate? We Can Help
PCA report real estate services are one of the many ways RSB Environmental helps business leaders make wise investment decisions. We proudly provide property condition assessments for clients throughout the nation, including in our home state of Texas.
Our detailed reports afford valuable insights into the state of key business systems. We not only compose thorough reports but also offer quick turnaround times. Our responsiveness ensures you have access to the information you need to move forward with your commercial real estate deal.
Ready to book a PCA to obtain a PCR report? Schedule a consultation with our team today to discuss the cost, scope, and turnaround times. And, if you require an expedited turnaround, let our team know so we can accommodate your specific timetable. We look forward to supporting your business.