Maximum Energy Professionals “MEP” has been assisting our commercial, industrial, shopping center, multi family, medical, educational and hospitality customers with mechanical-electrical-plumbing and fire life safety inspections and report documents associated with Property Condition Assessments involving the sale and financing of properties across the United States since 1990. We have performed in excess of 2,000 Property Condition Assessments (3 Billion square feet) across the country, and are looking forward to continuing to provide our expertise in this area in cities throughout the United States.
Property condition assessments (PCAs) are classified as engineering due diligence projects associated with commercial real estate, though engineering work is not part of the assessment and is excluded in the scope of the assessment. Effectively they are more detailed versions of home inspections, and involve numerous systems involved in the commercial market sector. They are typically performed as part of a property transfer.
On the equity side, these reports primarily have value to the purchaser in that they can understand the issues and the potential costs associated with owning a property. The Property Condition Report (PCR) may be used to negotiate the purchase price much like a home inspection. These reports tend to be very detailed, may require a number of specialists to evaluate the various building systems (e.g. HVAC, elevators, etc.)
In debt markets, the reports have the value of letting the lender know that the borrower will likely have sufficient cash flow to operate, maintain and update the property over the course of the loan. This provides some assurance to the lender that the loan will be repaid or in the worst case, the property will not decline in value in the situation they have to sell it to recoup their loan amount.