Commercial Property Inspections

Here is a quick summary of what a PCA which stands for a Property Condition Assessment contains and what to expect before a prospective Buyer wants to purchase a commercial property in the Austin area.When a commercial property assessment  occurs it is to inspect all improvements which include the following categories:

Property Structure¤

Foundation of the property¤Phase I and Phase II Environmental inspection for commercial property

Electrical characteristics in place¤




The commercial property inspection will include the following  scope of Work:




Pavement systems¤


Recommendations on immediate repairs

These are identified when it fails one of these 3 criteria:

Something is broken, The item being inspected is a safety concern or an issue that is identified as a potential  part of a larger system.In a thorough report there should be predictions of replacement reserves are made for site improvements ,  structure , mechanical , electrical , life safety, exterior improvements to the commercial property.

During an engineering inspection a calculation is  used for office  which is the cost per sf per yr in which the engineer may come up with a ratio which is sent to the lender for comparison purposes . Once the lender reviews the comparison and if they find  it is higher than normal, the lender can ask for more money from the buyer for the commercial property.

Walk Through Surveys are also used on commercial property  to visually observe the subject property so that an engineering or building inspector can obtain as much information as possible to identify any physical deficiencies in the property.  When hiring or using an engineer, a Buyer should look for  years of experience: Engineering inspectors should have a minimum of 5 yr of experience.  A Buyer can always specify the extent of an inspection they want.

There are also people who can accompany inspectors that  have Sub specialties such as : Roof ,  or a MEP Engineer-(for air conditioning),ADA specialist , Facade Specialist , or Elevator specialists can come into play as well.

Average Costs

A Property Condition Statement averages $2,000-$3,000  , an equity PCA which is customized commercial property assessment  may be anywhere from $5000-$50,000.A smaller report with tables and a cover letter can also be ordered to save money if a Buyer is on a tighter budget which is not as detailed.

Who wants a commercial property condition statement?

In case of a Pre-sale  a PCA can be done , this way  the seller knows everything up front and keeps the buyer from re-negotiating the sales price because they can repair or renovate or make the asking price of  the property within a reasonable range.





Red Flags for Property Inspections

The biggest red flags in inspection are roof leaks, any mechanical replacements required, non ADA compliance, Cracked side walks,  leaking building envelope, recalled systems such as aluminum wiring, recalled fire sprinkers etc..