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September 30, 2022

Will Inflation Affect Your Due Diligence?

By Gary Cohn

With inflation dominating the headlines, and construction costs continuing to escalate, commercial real estate investors may be wondering how these factors affect their Property Condition Assessments (PCA). Does current inflationary pressure impact values in the immediate repairs table (IRT) or the replacement reserve table (RRT)?

In short, the answer is yes and no. Depending on the needs of the entity ordering the report and how the report will be used, the consultant may adjust values in the IRT to reflect current inflation rates—but generally not in the RRT. For an explanation of the variables that affect why and how these adjustments are made, read the full post on GlobeSt.com.

About the Authors

Gary Cohn

Director of Institutional A&E Services

Gary Cohn is Partner Engineering and Science, Inc.’s Director of Institutional A&E Services. With almost 40 years of experience in the commercial real estate industry, Gary brings a wealth of experience and expertise to all projects. An experienced executive, Gary has a demonstrated history of working successfully in the design and construction industry. He is a strong technical professional with extensive experience in owners representation, capital planning, building assessment, and property resilience.

Get in Touch

Gary Cohn, RA
(714) 244-3648
[email protected]

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