– Commercial Building Assessments –

What Is a Commercial Building Assessment?

A commercial building assessment is an in-depth evaluation of a commercial property’s overall condition, usually carried out by a professional inspector or engineer. This assessment looks at key components of the building, such as its structure, mechanical systems (like HVAC, plumbing, and electrical), safety features, and its compliance with local building codes and regulations. The goal is to pinpoint any existing or potential problems that could impact the building’s safety, functionality, or long-term value.

Common areas covered in a commercial building assessment include:

  • Structural Integrity: Assessing the condition of critical structural elements like the foundation, roof, and walls for signs of damage or deterioration.
  • Building Systems: Inspecting essential systems such as HVAC, plumbing, electrical, and fire protection to ensure they are functioning properly and efficiently.
  • Safety and Compliance: Verifying that the property meets applicable safety standards and complies with local codes, regulations, and zoning laws.
  • Interior and Exterior Conditions: Reviewing the condition of interior features like floors, windows, and doors, as well as exterior components like parking lots, landscaping, and building facades.
  • Environmental Hazards: Identifying any potential environmental risks such as mold, asbestos, or water damage that may pose a threat to health or safety.

The primary objective of a commercial building assessment is to provide property owners, investors, or prospective buyers with a thorough understanding of the building’s condition. This allows for informed decisions regarding necessary repairs, upgrades, maintenance, or investments, helping to ensure the property remains in good shape and continues to function optimally.

  • Capital Reserve Forecast

    A capital reserve forecast is a financial strategy that projects future costs for the maintenance or replacement of key building components and systems. It helps property owners, managers, or organizations estimate how much money will be needed for substantial repairs, upgrades, or replacements of long-lasting assets like roofs, HVAC systems, elevators, plumbing, and electrical systems based on the findings from a Property Condition Assessment (PCA).

    The forecast is typically based on the expected lifespan of these assets, their current condition, and the anticipated costs for repairs or replacements. By anticipating these future expenses, a capital reserve plan ensures that funds are gradually set aside to cover large, often unforeseen costs. This approach helps prevent financial strain when major repairs are needed and supports the long-term maintenance and functionality of the property.

    In commercial real estate, having a capital reserve forecast is essential for protecting the property’s value and making informed decisions about budgeting, investments, and overall property management.


  • Opinion of Cost Report

    An Opinion of Cost Report is a document created by a professional, such as a contractor, estimator, or architect, that provides an expert estimate of the anticipated costs for a construction or renovation project based on the findings from a Property Condition Assessment. The report breaks down the expected expenses for labor, materials, equipment, and other necessary costs based on the project’s scope, specifications, and current market conditions.

    The primary purpose of an Opinion of Cost Report is to give property owners, developers, or project managers a clear understanding of the financial requirements before moving forward with the project. It serves as a tool for budgeting, securing financing, or assessing the feasibility of the project. While not a formal bid or contract, the report offers a well-founded estimate that can inform decision-making and help guide the planning process.


  • American Disability Act (ADA) Compliance Survey

    An Americans with Disabilities Act (ADA) compliance survey is an assessment of a building or facility to determine if it adheres to the accessibility standards outlined by the ADA. The ADA is a U.S. law designed to ensure that public and commercial spaces are accessible to individuals with disabilities. The survey identifies potential barriers that could prevent people with disabilities from fully accessing or utilizing the space.

    Key areas of evaluation include parking areas, entrances, doorways, hallways, restrooms, elevators, ramps, signage, and other features that impact mobility and access. The survey checks that these elements meet ADA guidelines, including appropriate dimensions, placement, and functionality.

    The purpose of an ADA compliance survey is to identify any areas that are not up to code and provide recommendations for necessary adjustments or improvements. This helps property owners or managers avoid legal liabilities, promote equal access for all users, and foster a more inclusive environment.


  • Accessibility Survey

    An accessibility survey is an assessment of a building or facility to evaluate its adherence to accessibility standards, such as the Americans with Disabilities Act (ADA) in the U.S. The survey focuses on identifying obstacles that may hinder individuals with disabilities from fully accessing or using the space. This includes reviewing areas like entrances, parking, restrooms, hallways, elevators, ramps, doorways, signage, and other common areas to ensure they meet accessibility requirements and legal standards.

    The purpose of an accessibility survey is to identify areas that require improvements or adjustments to make the facility more inclusive and accessible for people with physical, sensory, or cognitive disabilities. It assists property owners or managers in making necessary modifications to enhance accessibility and ensure compliance with regulations, ultimately creating a safer and more welcoming environment for all users. This is different from an ADA compliance survey.


  • Facility Condition Assessment

    A facility condition assessment (FCA) is a thorough evaluation of a building’s physical condition, focusing on the status of its infrastructure, systems, and key components. The assessment typically covers areas like the roof, foundation, HVAC systems, plumbing, electrical systems, structural integrity, and both interior and exterior finishes. Its purpose is to identify current or potential issues, such as wear and tear, inefficiencies, safety concerns, or overdue maintenance.

    FCAs are typically prepared for property owners or managers of real estate portfolios and offer a clear understanding of the remaining lifespan of building components, help prioritize necessary repairs or upgrades, and guide future maintenance or capital improvement plans.  FCAs are designed to serve as a functional tool to maintain property over time.  Ultimately, the assessment provides essential insights into the facility’s overall health, supporting efforts to maintain its value, ensure occupant safety, and optimize long-term performance.


  • Insurance Pre-Loss Assessment

    A pre-loss assessment centers on evaluating the potential risk exposure a property faces and estimating the associated costs for repair or replacement in the event of a loss.  It serves as a baseline or starting point so insurers can recognize that damage was caused by a specific incident and wasn’t there previously.


  • Insurance Loss Assessments

    An insurance loss assessment refers to the process of evaluating and documenting damages or losses incurred by an insured party, typically related to property damage, liability claims, or other covered events.


  • Maintenance Strategy Program

    Maintenance strategy programs are methods for managing assets and equipment to maintain operational efficiency.  These programs can include reactive, preventive, predictive, corrective, and condition-based maintenance.  The objective is to guide a building owner through the budgeting, planning, and execution of maintenance inspections, repairs and replacements, and prevention of unnecessary catastrophic repair expenses. The program benefits small businesses needing guidance in maintaining their buildings but does not have a maintenance worker on staff.


  • Property Condition Assessment (ASTM E2018-15)

    Property condition assessments (PCAs) are a thorough evaluation of a building’s physical state, usually conducted by a qualified inspector or engineer. This assessment involves a detailed inspection of the property’s structure, systems, and components to determine their current condition and identify any existing or potential problems. The purpose of a PCA is to give property owners, investors, or prospective buyers a clear picture of the building’s overall condition, highlighting any necessary repairs, maintenance, or upgrades.

    PCAs are due diligence projects associated with commercial real estate to identify the defects of the building and include a well-researched cost to repair each defect, or it may document deviations from building standards and include the recommended cost to rectify the non-compliance issue.