Property Condition Assessments (PCA)

Intertek is a multinational inspection, testing, and certification company that provides expert evaluation services across many industries. In commercial real estate, these services include Property Condition Assessments (PCAs, also known as Commercial Building Property Reports. A PCA is a walk-through survey that evaluates the physical condition of a property. It is typically performed during the due diligence process for commercial real estate transactions or used as a planning tool to evaluate ongoing maintenance and capital needs.

During a PCA, our team of architects, engineers, and construction quality control specialists assesses the readily accessible components and systems within the building. Our observations help identify deficiencies, estimate maintenance costs, and determine the remaining service life of key building systems.

We conduct a comprehensive review that typically includes the following:

• Site Improvements: Evaluates the property's exterior areas, including parking lots, landscaping, lighting, walkways, and drainage systems, to assess overall safety, functionality, and condition.
• Structural Systems: Examines the structural components of the building, including foundation elements, floors, walls, and roof framing, to assess stability and identify any issues with cracking, corrosion, or settlement.
• Building Envelope: Reviews the exterior envelope, including roof coverings, walls, windows, and doors, to determine weather resistance, insulation performance, and potential water intrusion.
• Mechanical and Electrical Systems: Assesses (HVAC) systems, electrical distribution, and plumbing components to evaluate operating condition, functionality, and compliance with current standards.
• Plumbing Systems: Inspects the building's plumbing systems, including sanitary, storm, and supply water lines, fixtures, and domestic hot water production systems, to detect leaks, corrosion, and deferred maintenance issues.
• Life Safety and Fire Protection Systems: Identifies and observes the performance of fire alarm panels, sprinkler systems, extinguishers, smoke detectors, and emergency lighting, to confirm operability and code compliance.
• Vertical Transportation: Reviews the type and number of elevators or escalators, including cab finishes, controls, communication equipment, and maintenance contracts to confirm safe and reliable operation.
• Additional Considerations: Evaluates compliance with applicable building codes and guidelines related to natural disasters, environmental concerns, ADA and FHA accessibility, pest management, mold, and indoor air quality.
• Documentation Review: Analyzes maintenance records, permits, construction documents, and previous inspection reports to understand the property's history, performance, and any ongoing issues.

Property Condition Report (PCR)

Once the assessment is complete, we provide a Property Condition Report (PCR) that outlines the observations and opinions developed during the assessment. The report includes observed deficiencies, recommendations for repair, and suggested follow-up investigations.

The specific scope and depth of a Property Condition Assessment can vary depending on the client's requirements, the property's size and complexity, and applicable industry standards or regulations.

Performed in accordance with ASTM E2018-24, a PCA serves as a baseline assessment of the developed property. It identifies the property's overall condition and projects when capital expenditures may be required to maintain both function and marketability for its intended use.

Property Condition Assessments provide valuable information that supports general building maintenance and due diligence in real estate transactions. Owners, buyers, and lenders rely on these assessments to make informed decisions regarding risk, liability, and the potential cost of repairing or replacing major building components such as roofs, curtain walls, and pavements.

The condition of less visible systems, such as mechanical, electrical, and plumbing, can also significantly affect the property's value and operational reliability. Proper due diligence provides a better understanding of the property's condition, risks, and potential solutions. Without it, owners risk unexpected costs, time, and operational disruption.

A Property Condition Assessment typically addresses:

• Structural systems
• Pavements
• Roofing systems
• Natural disaster resilience
• Mold
• Environmental conditions
• Mechanical, electrical, and plumbing systems
• Exterior wall systems
• Life safety and building code compliance
• ADA accessibility
• Sitework
• Other relevant considerations

Each PCR provides an easy-to-use summary of the property's major systems, current condition, remaining service life, and projected maintenance or replacement costs. The report may also include remediation recommendations and options that help owners make informed, value-based decisions.

Why Property Condition Assessments Matter

A Commercial Property Inspection provides the insight needed to make informed decisions about acquisition, refinancing, or long-term maintenance planning. Owners, buyers, and lenders rely on these assessments to identify potential risks, liabilities, and the remaining service life of building systems.

Without proper due diligence, hidden issues such as roof deterioration, structural deficiencies, or aging mechanical systems can result in significant repair costs and operational downtime. Our Commercial Building Property Report helps quantify those risks, prioritize repairs, and provide a clear picture of overall asset condition.

Typical Scope of Services

• Review of available construction documents
• Visual observation of the buildings and site
• Photographic documentation of general conditions
• Report of findings and conclusions
• Tabulated analysis of immediate needs costs
• Capital-reserves analysis

Performed in accordance with ASTM E2018-24, Intertek's PCAs serve as a baseline evaluation for determining building condition, system life expectancy, and anticipated expenditures.

Additional Assessment Options

• Third-Party Reviews: Provides an independent evaluation of environmental documents prepared by others. Intertek reviews for compliance with ASTM standards and verifies whether findings support the stated conclusions.
• Probable Maximum Loss (PML) Assessments: Calculate the potential risk for earthquake damage, often performed alongside PCAs in regions where seismic activity is a concern.
• Enhanced Assessments: Offers expanded evaluations of specific systems or entire properties, including detailed building enclosure studies, MEP reviews, vertical transportation assessments, accessibility audits, energy evaluations, and climate risk analysis.

The Intertek Advantage

Every Property Condition Assessment delivers data-driven insights that help clients protect investment value, reduce financial risk, and plan capital expenditures with confidence. Backed by our global expertise in Commercial Building Inspections and Commercial Property Inspections, our reports provide reliable, actionable information that supports smarter decisions throughout a property's life cycle.

To request a Commercial Building Property Report or learn more about Intertek's property evaluation services, contact our team.