Prema’s qualified staff assists our clients in property condition assessments. Such assessments are typically a part of due diligence process involving commercial real estate transactions. Lenders typically require a Property Condition Assessment (PCA) [or also known as Property Condition Report (PCR)] before authorizing a loan. Acquisitions manager or asset managers may also need a PCA report before purchase of the property.

Property Condition Assessment (PCA) studies are generally performed by engineers or commercial building inspectors. ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process establishes a guideline for performing such assessments. Most commonly, PCAs have two components: Immediate Repairs Table and Replacement Reserve Tables. The Immediate Repairs Table provides opinions of costs for immediate and short-term capital needs. The Replacement Reserve Table identifies long-term capital expenses based on the expected useful life of the building systems.

Once the PCA is completed by Prema staff, a written report is compiled and delivered to the client within an acceptable time frame. Depending on the requested scope, the report may include items such as recommendations for repairs or further inspections, opinions of the likely cost of future capital projects, and Americans with Disabilities Act (ADA) compliance surveys.