Property Condition Assessments (PCAs) are a standard component of most real estate transactions. These assessments allow for the evaluation of assets and their condition, including immediate and future upkeep requirements. Lenders, buyers, property managers, and developers alike can benefit from the completion of general PCAs. Lenders and property managers can use PCAs to keep track of the state of their investments including potential risks and maintenance costs and determine if a buyer will be financially able to maintain an asset. Property developers and buyers can also use PCAs to understand investment risks and support price negotiations. While basic property condition assessments are certainly useful, completing a PCA with a twist can prove even more beneficial.
Several types of specialized property condition assessments are available for use in real estate activities. Pre-lease due diligence PCAs, for example, can be used by tenants to identify maintenance requirements they may face in the now or in the future. This is especially useful when a lease places the burden of maintenance on the tenant as it allows the tenant to account for possible costs that may be incurred through maintaining these assets. Pre-lease PCAs also work to establish an asset’s condition prior to leasing, thereby identifying the ‘base condition in which the asset must be returned. If looking for cost-cutting options on a basic operational level, Green PCAs (GPCAs) provides the opportunity to examine current costs and look for opportunities for decreased expenditures.
Green PCAs encourage ‘green’ operations, especially in relation to energy efficiency. This assessment combines a basic PCA with an Energy Audit to evaluate the condition and efficiency of a building. Upon completion of the GPCA, alternate operational processes and potential investments that will improve their building’s energy efficiency are presented in a ranked format based on the payback period. These Energy Efficient Measures, or EEMs, will ultimately result in lowered energy use as well as associated operating and maintenance costs. Property owners or operators can choose which Energy Efficient Measures (EEMs) that they would like to implement with respect to the budget, operating needs, capital investment return requirements, sustainability goals, and branding. Choosing a PCA with a twist lets property owners and operators get the most out of their assessment and their investment!