Commercial Building Inspection (CBI) or Property Condition Assessment (PCA)
Large corporations, real estate investment trusts, and individual investors purchase commercial real estate (CRE). As part of the pre-purchase due diligence process—often required by lenders—Criterium Engineers offers two key types of commercial building pre-purchase inspections to guide our clients through that process.
Not only are these inspections and resulting reports important to learn the state of a building, but they may also help in negotiating a purchase price, based on what is found.
Here is a comparison of the two inspection types.
Commercial Building Inspection (CBI)
- Our licensed, Professional Engineers perform a thorough, on-site visual inspection of the commercial building that encompasses its overall condition, focusing on all the critical building components (structural, roof, electrical, plumbing, air and heating, paving, drainage, etc.), environmental factors (including air flow and insulation) and safety issues – fire and other potential hazards.
- The written report Criterium Engineers produce provides a detailed summary of our findings, highlighting building strengths as well as any weaknesses or potential problems we identify.
- We clearly explain a building’s current condition, so our clients can make confident, informed decisions about their purchase.
Property Condition Assessment (PCA)
- A PCA is the gold standard for commercial building inspections.
- Includes the detailed findings and current condition defined in the CBI, but also:
- Outlines areas of deferred maintenance or significant deficiencies that may require attention in the future.
- Includes probable costs and a capital expense budget for repair or replacement of damaged or failing building systems or safety issues
- The PCA budget includes:
- Immediate Costs
- Short-Term Costs
- Repair/Replacement Budget & Time frame (usually a 5-10 year outlook)
- The PCA can help buyers refine future cash flow projections, renegotiate purchase price on the true condition of the property, and inform the seller of deficiencies.
All of our reports conform to widely recognized national standards set by the American Society for Testing and Materials (ASTM), and Standard and Poor’s. We evaluate thousands of buildings across the country each year. Contact us today to request a free proposal.