Buying a commercial property is a complex undertaking requiring time, money, and serious consideration. Regardless of whether you live in Los Angeles, CA or another U.S. city, it is vital to perform comprehensive due diligence before committing to any property purchase. This process includes conducting a commercial property and building inspection, also known as a property condition assessment (PCA).
Here’s what you need to know about professional assessment if you are about to buy real estate in Orange County or Los Angeles and want to make sure that you make a worthwhile investment.
Think of a PCA as the commercial or mixed use version of a professional home inspection required by a lender before a residential purchase. This assessment is, however, a more complex investigation process. Its purpose is to evaluate the overall condition of a building, key building systems, property improvements, as well as short- and long-term maintenance costs.
A thorough assessment can help buyers or lenders in Los Angeles gain deeper insight on how the condition of the building will impact the performance of the asset in the future. The report will also reveal any uncovered mechanical deficiencies or safety issues.
Anyone who wants to minimize the risks involved in the purchase won’t consider a PCA a mere formality. The purpose of a facility condition analysis is to reduce the risk for the buyer or lender. Potentially, it will also give both parties a chance to renegotiate the price of the property based on its genuine condition.
First, you’ll need to know what to expect from a property condition assessment. The PCA process includes the following components:
As a (future) commercial property owner in Los Angeles, you should know all the details of the building you want to buy. This is when a PCA comes into play. The assessment will give you crucial information and expose any problem areas, deficiencies, and issues that are not easy to spot at first sight.
If you want to maximize the benefits from the assessment for you and your business, hire a highly qualified professional. Commission a detailed assessment from a reputable construction consulting firm, such as Xpera Group.
We are a PCA provider for Southern California. We take pride in having the West Coast’s leading team of field investigators and construction experts. Have our knowledge and experience by your side! Whether you need detailed information for insurance risk evaluation, use-conversion or due diligence for a real estate transaction, call us today to get your PCA started.