What this guide helps you evaluate
Buyers, lenders and owners screening the physical condition and near-term capital needs of a commercial property.
This page is designed to help you compare the moving parts, organize due diligence and ask better questions before you commit money, sign a contract or change an operating process.
What to compare first
- Site, drainage, paving and landscaping
- Structure, roof, facade, windows and waterproofing
- Mechanical, electrical, plumbing and vertical transportation
- Fire/life safety, accessibility and code observations
- Deferred maintenance and replacement-reserve planning
Step-by-step process
- 01
Collect drawings, maintenance records, prior reports and capital budgets.
- 02
Inspect the site and major systems with appropriate specialists.
- 03
Interview property management about recurring failures and planned replacements.
- 04
Estimate immediate repairs and larger capital items by time horizon.
- 05
Separate observed conditions from intrusive testing that was not performed.
Common mistakes and risk checks
- Treating a visual PCA as a structural or environmental guarantee.
- Ignoring tenant-owned equipment or lease responsibility splits.
- Using a single replacement-cost estimate without contingency.