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  • Writer's pictureCommercial Property

What Is a Building Condition Assessment and When Do You Need One?

A Building Condition Assessment (BCA), also known as a Facility Condition Assessment (FCA), is a systematic inspection, review, and report on the state of a commercial building’s structure and systems. It is often compared to a home inspection, but it provides more detailed information and is necessarily more complex due to the nature of and requirements for commercial facilities.

When Do You Need a Building Condition Assessment?

Most banks will require a BCA/FCA, or PCA, prior to final approval on a commercial property loan. The assessment gives both the bank and the owner valuable information about the likely cost of ownership and may become a basis for further purchase price negotiation. When severe problems are identified by the BCA, the loan may not be approved, or the buyer may back out voluntarily.

As important as a BCA is prior to a purchase, it is not the only time you may want to invest in one. A BCA can also provide valuable information when:

  • Determining whether to renovate, sell, or demolish a facility

  • Allocating resources across a large portfolio of properties

  • Creating safety and maintenance programs for your properties

  • Assessing the value of a property you own

  • Forecasting and budgeting maintenance expenses

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