DUE DILIGENCE COMMERCIAL PROPERTY INSPECTION

Commercial property inspections differ considerably from home inspections. A Property Condition Assessment (PCA) is the standard protocol for commercial inspections.

The standard of practice has been established by the American Society for Testing and Measurement. View this PDF to review these standards.

The purpose of the PCA is to observe and report, to the extent feasible, on the physical condition of the subject property.

The PCA should have four components:


1. Documentation Review and Interviews:
The objective of the document review and interviews is to augment the walk-through survey and to assist the consultant’s understanding of the subject property and identification of physical deficiencies. Records or documents, that are readily available and reasonably ascertainable may be reviewed in completion of the assessment.

2. Walk-Through Survey:
The objective of the walk-through survey is to visually observe the subject property so as to obtain information on material systems and components

3. Preparation of Opinions of Costs to Remedy Physical Deficiencies:
Based upon the walk-through survey and information obtained in accordance with following this guide, general-scope opinions of costs are to be prepared for the suggested remedy of the material physical deficiencies observed. These opinions of costs are to assist the user in developing a general understanding of the physical condition of the subject property. Opinions of costs should be segregated within the PCR into the categories of immediate costs and short-term costs.

4. Property Condition Report
The PCR will include photographs of subject items, when possible or practical, copies of any pertinent documentation from applicable municipalities such as the building dept, and code enforcement, fire marshal and dept. of health.