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Property Condition Assessment

At KOW Building Consultants, our Property Condition Assessments (PCAs) provide commercial lenders, equity partners, and real estate investors with a clear view of a property's physical condition and its associated capital needs. Conducted in accordance with ASTM E2018-24, Freddie Mac, or Fannie Mae our assessments help you reduce exposure, identify deferred maintenance, and forecast capital expenditures across your portfolio.

What is a Property Condition Assessment?

A Property Condition Assessment (PCA), also referred to as a Property Condition Report (PCR), is a third-party inspection of a property’s building systems, components, and site features. It’s a crucial part of real estate due diligence—used by lenders, buyers, and developers to evaluate potential risks and protect their financial investments.

A typical PCA includes:

  • A walk-through survey of the building and site

  • A review of available documentation (drawings, permits, maintenance records)

  • Interviews with facility staff (if applicable)

  • A final Property Condition Report, including a 10, 12, or 15-year capital reserves table and Immediate Repairs list

What's Included in a KOW Property Condition Assessment?

Our team of engineers, architects, and building inspectors perform a detailed visual inspection of the following major systems:

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Site & Exterior Features

  • Pavements, parking, drainage, topography, retaining walls, signage, landscaping.

Structural Systems

  • Foundation, framing, roof deck, load-bearing elements, visible structural cracks

Building Envelope

  • Roof coverings, façade, doors/windows, waterproofing, flashing, caulking

Interior Finishes

  • Common area walls, ceilings, flooring, finishes, tenant space conditions (where accessible)

Mechanical, Electrical & Plumbing (MEP) Systems

  • HVAC equipment (age, capacity, condition), electrical panels & systems, domestic hot water systems, piping condition

Fire/Life Safety Systems

  • Fire alarm, sprinklers, emergency lighting, extinguishers, code compliance

Vertical Transportation

  • Elevators and lifts, condition of cabs and controls, inspection status

Accessibility & Code Compliance

  • ADA, FHA, and local building code compliance (basic review)

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Deliverables You Can Depend On

Each KOW PCA includes:

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  • ✅ Full Property Condition Report (PDF)

  • ✅ Immediate Repairs Table (critical costs within 0–12 months)

  • ✅ Capital Reserve Table (10-year forecast of capital needs)

  • ✅ Photo log of observed conditions

  • ✅ Optional recommendations for additional studies (e.g., structural, MEP deep-dive, or Phase I ESA)

 

All reports are ASTM E2018-24, Freddie Mac, or Fannie Mae compliant, lender-ready, and formatted for easy underwriting and financial modeling.

Why KOW for Property Condition Assessments?

  • Industry-Trusted: We've supported hundreds of lenders and owners with PCAs for acquisitions, refinancing, HUD loans, and more

  • Highly Experienced Team: Professional engineers, inspectors, and construction experts with deep CRE knowledge

  • Clear Reporting: We prioritize clarity, relevance, and actionable insights

  • Fast Turnarounds: We meet tight due diligence timelines—often within 7-10 business days

Start your PCA with KOW

Whether you’re underwriting a loan, acquiring a new asset, or refinancing your portfolio, we’ll help you understand the condition, cost, and risk before you commit.​

Property Condition Assessment FAQs

What is a Property Condition Assessment (PCA)?

At KOW Building Consultants, a Property Condition Assessment is a comprehensive inspection of a commercial property’s major systems. Our PCA reports help lenders, investors, and developers assess physical risks and plan capital improvements, often in tandem with capital needs assessments for long-term financial planning.

Who Needs a Property Condition Assessment?

Our clients include commercial lenders, REITs, developers, equity partners, and insurance providers. Whether you're evaluating a new asset or securing financing, a PCA, alongside services like construction loan monitoring, gives you confidence in your investment.

Are your PCA reports compliant with ASTM E2018-24?

Yes. KOW Building Consultants performs all PCAs to ASTM E2018-24 standards. We also accommodate Fannie Mae and Freddie Mac formats when needed. As detailed on our About page, our engineering and inspection team has decades of experience serving CRE stakeholders nationwide.

Are your PCA reports compliant with Freddie Mac?

Yes. KOW Building Consultants performs all PCAs to ASTM E2018-24 standards. We also accommodate Fannie Mae and Freddie Mac formats when needed. As detailed on our About page, our engineering and inspection team has decades of experience serving CRE stakeholders nationwide.

Are your PCA reports compliant with Fannie Mae?

Yes. KOW Building Consultants performs all PCAs to ASTM E2018-24 standards. We also accommodate Fannie Mae and Freddie Mac formats when needed. As detailed on our About page, our engineering and inspection team has decades of experience serving CRE stakeholders nationwide.

Do PCA reports include cost estimates for repairs?

Yes. All KOW PCA reports contain an Immediate Repairs Table (0–12 months) and a Capital Reserve Table covering 10–15 years. These cost estimates help you prepare for ownership and may be required for compliance with Enterprise Green Communities or agency loan guidelines.

Why choose KOW Building Consultants for a Property Condition Assessment?

Clients choose KOWBC because we deliver fast, clear, and lender-ready reports. We integrate our PCA process with broader services like capital planning, construction loan monitoring, and green building compliance, making us a strategic partner, not just an inspector.

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