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What is a Property Condition Assessment (PCA) Due Diligence and or (CNA) Capital Need Assessment

Writer's picture: mrb.bs163@gmail.commrb.bs163@gmail.com

A Property Condition Assessment (PCA) walk-through survey is a crucial component, typically conducted as part of the due diligence process for commercial real estate transactions, or as a guide during capital planning for HOAs, schools, banks, churches, and similar organizations to understand the facility’s condition.


This comprehensive inspection is typically performed by a qualified inspector to assess the condition of the property and its various systems and components. The goal is to provide a detailed report to the potential buyer, allowing them to make informed decisions about the purchase.


1. Exterior and Site Assessment:

Evaluation of the building's exterior condition, including walls, roof, foundation, and windows. Assessment of the site, parking lots, sidewalks, lighting, landscaping, and any visible signs of damage or wear.


2. Structural Components:

Examination of the building's structural integrity, such as the framing, foundation, and any visible signs of structural damage.


3. Roofing System:

Inspection of the roof for damage, leaks, or areas in need of repair.

Assessment of the roof's age and estimated remaining lifespan.


4. Mechanical Systems:

Evaluation of HVAC (Heating, Ventilation, and Air Conditioning) systems for functionality and condition. Inspection of plumbing and electrical systems, including visible components, such as pipes, fixtures, and wiring.


5. Electrical Systems:

Assessment of the electrical panel, wiring, and visible components for any signs of wear, damage, or safety concerns.


6. Plumbing Systems:

Inspection of plumbing lines, fixtures, and drainage systems.

Check for any leaks, corrosion, or other issues that may need attention.


7. HVAC Systems:

Examination of the heating and cooling systems, including equipment, ductwork, and controls. Verification of operational efficiency and overall condition as well as the remaining life span.


8. Interior Evaluation:

Inspection of interior spaces, looking for visible damage, wear, or potential issues.

Assessment of walls, ceilings, floors, and any signs of moisture or mold.


9. Environmental Concerns:

Investigation of potential environmental hazards, such as asbestos, lead-based paint, or other contaminants. Customarily this is an assessment of conditions leading to environmental issues and or obvious concerns which are then recommended for review or further assessment by an environmental firm.


10. ADA Compliance:

Review of accessibility for compliance with the Americans with Disabilities Act (ADA), including parking, ramps, doorways, and restroom facilities.


11. Life Safety Systems:

Inspection of fire and life safety systems, including fire alarms, sprinklers, and emergency exits. This assessment concentrates on the review of existing records indicating the upkeep of these systems and compliance concerns.



12. Documentation and Records Review:

Examination of maintenance records, repair history, and any available documentation related to the property's systems and components. At this point, the field supervisor will also interview management, custodians, maintenance personnel, repair, and installation technicians previously working at or managing the site.


The PCA walk-through survey results in a comprehensive report that includes findings, photographs, recommendations, and an estimated Reserve Cost Table for necessary repairs or replacements. This report serves as a valuable tool for buyers and investors to assess the property's condition and make informed decisions regarding commercial real estate transactions. It helps to mitigate risks, determine the property's value, and plan for future maintenance and upgrades.


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