Criterium Engineers provides the straightforward evaluation required for an extensive Pre-Lease Property Condition Report (also referred to as a property condition assessment) for clients looking to lease buildings of all sizes. They are especially useful for Triple-Net Lease negotiations.
Investing in due diligence and being an informed lessee provides greater confidence in the property, quantitative information for tenants, as well as peace of mind that the property will be appropriate for our client’s expectations.
- Understand the property’s baseline condition
- Solid information to make decisions on repairs or replacements, especially for Triple-Net Lessees
- Detailed information to share with tenants
- Saves time, money and establishes a baseline, which may minimize conflict with the building owner
- Benefits all parties involved in the transaction
What is a Pre-Lease Property Condition Report / Assessment?
- Customized for the client’s business purpose
- Used in support of real estate transactions
- Commissioned for lease negotiations and, at times, upon termination
- Provides an accurate condition of the asset
- Offers an opinion on the building’s useful life
- Outlines the probable costs required to repair or resolve any building issues
Details in a Customized Pre-Lease PCR Include:
- Representation of the property’s physical condition, including: property description, site improvements, and building systems
- Outline of capital needs and opinion on probable costs: short-term repairs or replacements and preliminary capital budgets for the future
- Recommendations for further study
- Baseline data to resolve deficiencies and issues
- Digital photography and informative reference exhibits/documents
Click here to view an outline of an example PCA.
Reports vary in length (often exceeding thirty pages) and are based on building size and complexity—for example a report prepared for a 35-story downtown office building, differs greatly from that for a 1,800 square foot retail space.
The average building PCA reviews more than 30 major building and site elements in great detail. It provides descriptions, deficiencies and recommendations. It also includes probable costs for repair or replacement of damaged or failing building systems or safety issues. PCA reports are customized for each client and may be designed to focus on areas that otherwise may not be covered in a baseline assessment.
What Does a Pre-Lease Property Condition Assessment Cost?
$4,000-6,000 (average) and long-term savings: tens of thousands (on average)