Commercial Inspections (also known as Property condition assessments or PCAs) are classified as engineering due diligence projects associated with commercial real estate, although engineering work is not part of the assessment and is excluded in the scope of the assessment. Effectively they are more detailed versions of home inspections and have similar (and additional – see below) value propositions. Often they are done as part of a property transfer and may be done along with an Environmental Site Assessment.
They are done in both equity and debt markets. On the equity side, these reports primarily have value to the purchaser in that they can understand the issues and the potential costs associated with owning a property. The Property Condition Report (PCR) would be used in these cases to negotiate the purchase price much like a home inspection. These reports tend to be very detailed, may require a number of specialists to evaluate the various building systems (e.g. HVAC, elevators) and can cost a significant amount of money for large properties.
In debt markets, the reports have the value of letting the lender know that the borrower will likely have sufficient cash flow to operate, maintain and update the property over the course of the loan. This provides some assurance to the lender that the loan will be repaid or, in the worst case, the property will not decline in value in the situation they have to sell it to recoup their loan amount.
ASTTBC-PI Certified Property Inspectors, or CPIs, are qualified to inspect a range of commercial properties, from the smallest retail store or office building to the largest commercial or industrial facility. Their vast years of inspection knowledge and experience are the cornerstones of the commercial inspection industry in BC. As veterans of the home and property inspection profession, these dedicated inspectors will assist you with high quality inspections and reports.