According to conventional wisdom, “If it ain’t broke, don’t fix it”. That said, how can you be certain when something is functioning at full capacity, simply in need of some TLC, or broken beyond repair? For property owners, knowing the current condition of a building is vital to effective site management. A Building Condition Assessment Report offers a window into the building health of a commercial property, including both assets and liabilities. But what exactly is a Building Condition Assessment Report?

What Is a Building Condition Assessment Report?

A Building Condition Assessment Report is based on the thorough review and expert appraisal of a commercial property. When the Building Condition Assessment itself has been completed, key findings are summarized in a detailed report that can be shared with all relevant stakeholders. Here’s a breakdown of what to expect from the Building Condition Assessment report:

• Compilation of all collected data, inspection findings, and evaluation results.
• Prioritized list of identified deficiencies and maintenance recommendations.
• Suggestions for repairs, replacements, or upgrades.
• Estimate of associated costs for recommended actions.

Purposes of a Building Condition Assessment report

The benefits of a Building Condition Assessment report are manifold. This extensive report is designed to serve the following purposes:

• Meet potential financing requirements for commercial property owners (for sale or refinancing purposes).
• Provide valuable insights into the true condition and value of a building, thereby informing decision-making and negotiation terms.
• Allow site owners and operators to monitor commercial buildings and plan maintenance accordingly.
• Help identify potential safety hazards or structural deficiencies.
• Allow property owners to mitigate risks and help ensure safety of occupants and visitors.
• Enable effective planning and budgeting as part of long-term asset management strategy.
• Helps identify areas of building non-compliance

Simply put, a Building Condition Assessment report provides a comprehensive understanding of a building’s condition, enabling proactive maintenance, risk mitigation, and informed decision-making regarding property, whether planning to sell or not.

Top 3 Benefits of a Building Condition Assessment report:

1. A Building Condition Assessment Report Identifies Maintenance and Repair Needs

To fully grasp the current state of a property, it is imperative that all relevant information be disclosed – the good, the bad, and the ugly. A Building Condition Assessment report identifies all maintenance and repair needs. Although nobody wants to hear bad news, the discovery of these deficiencies will only enhance the value of a commercial building once properly addressed. The good news is that being in the know enables property owners to take immediate action and rectify areas of potential concern before they get out of hand. It also fosters a proactive approach to site management and capital planning.

2. A Building Condition Assessment Report Supports Decision Making and Budget Planning

Successful property management relies on careful foresight. A Building Condition Assessment Report supports decision making and budget planning in many ways. It not only identifies potential areas of concern, but also provides a list of optimal solutions and the associated costs. The value of this information cannot be overstated as it allows property owners to anticipate what is to come and budget their time and financial investments accordingly.

Imagine, for example, trying to teach a class without learning the assigned curriculum or individual names of the students. What are the odds of compliance? Much like classroom management, details are crucial to property management. Each commercial property is unique, and each owner has distinct site goals. This is why a Building Condition Assessment Report is tailored to the specific needs of the property owner and their individual building. It then becomes a blueprint to help inform future decisions and next steps.

3. A Building Condition Assessment Report Enhances Safety and Occupant Satisfaction

One of the biggest considerations (and potential liabilities) of property management is safety. Likewise, occupant satisfaction ranks very high on the list of priorities for commercial property owners. A Building Condition Assessment Report enhances safety and occupant satisfaction through the identification of safety risks and potential areas of concern. Best of all, the report outlines cost allowances to address both existing deficiencies and required maintenance.

This essential combination of reparative and preventative action is what improves the overall condition of commercial buildings. It also helps to increase property value and occupant satisfaction.

The Takeaway

All key stakeholders can benefit from a timely Building Condition Assessment Report, including realtors, bankers, lawyers, property developers, and especially site owners. Once a commercial building becomes a known entity, the path forward is suddenly clear. And what better way to protect a valued investment than with expert advice and intentional practice?