WHAT'S THE DIFFERENCE BETWEEN A PROPERTY CONDITION ASSESSMENT AND A FACILITY CONDITION ASSESSMENT?
A Property Condition Assessment, also known as a Property Condition Report or Commercial Building Inspection, is an evaluation of a commercial real estate asset based on a thorough inspection, including all improvements and all the systems of each building on the property. A PCA is typically ordered as part of the due diligence process when a property changes hands. A lender may request a PCA before issuing a loan, or an investor/buyer may request the assessment before purchase.
Facility Condition Assessments (FCAs) serve a different purpose. Typically prepared for owners or managers of real estate portfolios, FCAs help owners understand and maintain the physical condition and value of their assets, develop capital budgets, and prioritize resources. A Facility Condition Assessment can also be used to secure additional funding.