When it comes to Property Condition Assessments (PCAs), one size does not fit all. Every subject property will require a different level of assessment guided by the purpose of the PCA. Considerations include the type and age of subject property, expertise and risk tolerance of the user, and time available for preparing and reviewing the opinions contained in the PCA.
Partner has identified six levels of condition assessments to meet the needs of our clients, from lenders to commercial real estate investors. The levels range from an ASTM-standard assessment to an advanced team of specialists with customized scopes and reporting. A Partner Expert can help determine the appropriate level of assessment based on the subject property and real estate strategy.
Level 1: Baseline Finance PCA
For lenders providing financing for a commercial real estate transaction, an ASTM-standard PCA assesses the property’s physical condition and confirms alignment with lending criteria. This can be completed by a generalist assessor in most cases.
Level 2: Baseline Equity PCA
Buyers or investors who are acquiring or disposing of simple properties can also receive great value from a generalist assessment as part of their due diligence process. This report can be utilized to determine transaction decisions and negotiate terms.
Level 3: Equity PCA with Limited Specialists
For equity transactions dealing with custom scopes, Partner may recommend a limited number of specialists to meet the requirements of the property type. These reports also include a higher level of communication from the assessor throughout the process.
Level 4: Equity Multi-Discipline Team PCA
Properties with advanced complexity often require a multi-disciplinary team of specialists. These assessments involve more time on-site to gain a deep understanding of risks for planning and asset management. Specialty evaluations are often integrated into the report.
Level 5: Occupier Transactional FCA
Clients who engage in transactions to occupy properties receive greater benefit from a Facility Condition Assessment (FCA). These reports are customized in scope and focus on asset management beyond the ASTM reporting style.
Level 6: Occupier Capital Planning FCA
The Capital Planning FCA is appropriate for occupiers who require a detailed understanding of facilities for long-term management and optimization. These reports are highly specialized and commonly delivered as customized data dashboards.
The Purpose of Assessment Levels
At Partner, we aim to provide assessments that solve the objectives of our clients while adhering to the highest standards in due diligence. Specialized reports are generally more expensive; however, our clients often save money by identifying risks ahead of time. Under the appropriate scope of work, the PCA can serve as a tool for making informed decisions and managing properties effectively.
To learn more about the scopes of work involved in a Property Condition Assessment, visit our service page or contact us to speak with a Partner Expert.
