Property Condition Assessments in Los Angeles
The E 2018 Guideline for Commercial Real Estate
A property condition assessment, according to the E 2018 guideline, is “the process by which a person or entity observes a property, interviews sources, and reviews available documentation for the purpose of developing an opinion and preparing a PCR (Property Condition Report) of a commercial real estate’s current physical condition. At the option of the user, a PCA may include a higher level of inquiry and due diligence than the baseline scope described within this guide or, at the user’s option, it may include a lower level of inquiry or due diligence than the baseline scope described in this guide.”
What Does “Baseline” Mean?
“…According to the guide: ‘the minimum level of observations, due diligence, inquiry/research, documentation review, and preparation of opinions of probably costs to remedy material deficiencies for conducting a PCA as described in this guide.’”
It’s important to note that concealed physical deficiencies are excluded in property condition assessments; they are not generally technically exhaustive. Therefore, what the inspector can’t see is not included in the PCA, and using instruments, testing, or calculations is not often part of a property condition assessment. The reason for this is that the cost and time necessary for these additional assessments tends to far outweigh the value of that info to the client.
What You Need to Know
The ASTM E 2018 is a guideline for voluntary use by parties who are looking to obtain a baseline property condition assessment of commercial real estate. The scope of the PCA is up to the user – it can range from a baseline assessment to a much more in-depth investigation. Our professional inspectors at Commercial Real Estate Inspectors, LLC can help you determine the scope necessary for your commercial inspection.
What to Do Next
We personally advise anyone needing an inspection for commercial real estate to ensure that these standards are used. Aside from using these standards, the most important aspect of any inspection is who you hire to carry it out. Take the time to do your research on different inspectors.
Commercial Real Estate Inspectors, LLC has more than 30 years of collective experience delivering inspections throughout Los Angeles. Contact us at (888) 277-2716 to learn more about our unique RISK Assessment process.