Equity Level vs. Standard Property Condition Assessment Reports

Posted by Evolve October 23, 2020

Equity Level vs. Standard Property Condition AssessmentsAt NV5/Bock & Clark we supply the property condition assessment reports necessary to bring a level of comfort to all parties included in a commercial real estate transaction. In some cases, a deal may require the preparation of an Equity Level Property Condition Assessment (PCA) to assist clients in understanding the physical state of a single property or real estate portfolio. 

What an Equity Level Property Condition Assessment Provides

Whether leasing, purchasing, improving, or financing, an equity level PCA provides more detailed insight than a standard property condition assessment including:

  • The exterior envelope
  • Site
  • Roof
  • Mechanical/electrical systems
  • Conveyance systems
  • Observation of interior areas
  • Life safety system compliance

Equity Level Property Condition Assessment Manages Risk

The equity level PCA is frequently used by investors to support a due diligence effort that manages risk by understanding the condition of a building prior to purchase. A company planning to make a large capital investment would want to do more inclusive property condition assessments on their facilities to determine what capital expenditures will deliver the best return. 

Due to its complexity, the equity level PCA is more expensive than a standard PCA or other type of report.  However, it is a great resource when contemplating the purchase of a property and very useful in maintaining the asset by allowing for proper planning for capital improvement and the associated expenditures.

For more information on an Equity Level PCA or other NV5/Bock & Clark services, please contact us at 1-800-787-8397 ext. 854.