Assessing Building Condition and Financial Performance
Better understand the condition of the building systems and equipment, and how they may impact the financial performance of the asset.
For commercial properties from $1M to $10M, and smaller buildings where additional financial consideration is required, following ASTM E2018, Standard Guide for Property Condition Assessments. Inspections of the subject property assess the building systems and condition and the report includes summary data and cost tables for immediate and long-term expenses.
What is Covered
The Inspection
Assessments review the building site, envelope, interior, mechanical systems, plumbing, electrical systems, vertical transportation, life safety, accessibility, and code compliance. The site examined for topographic features, drainage, flatwork (i.e. paving, curbing, and sidewalks), retaining walls, and exterior lighting and signage. The building envelope reports on the type and condition of fenestration (windows and doors), walls, and roof membranes--this includes moisture intrusion, infrared thermography, and overall condition. Mechanical systems include heating, ventilation, and air conditioning.
The Report
The report includes a narrative summary of the building type and condition, along with supporting documentation, illustrations, and photographs; and immediate repairs and replacement reserve tables for near and long-term expenses.
The Purpose
Property Condition Assessments are typically used by the buyer negotiating the purchase price of a property, and for loan approval by the banks and other lenders. Owners may use them for capital or strategic planning, and for predictive or preventative maintenance.
Dan LaBossière, Assistant Vice President, Business Development at BDC, says building condition assessment is part of the due diligence process helping with purchase decisions and understanding risks. “At BDC, these assessments are required for all buildings over $2.5 million,” says LaBossière.