If you are a commercial/industrial property owner or in the market for commercial real estate in Alberta, you may be considering a Building Condition Assessment to evaluate the current state of a building. This type of assessment can provide valuable information about the condition of a building and help plan for future maintenance and repairs. A Building Condition Assessment can also establish a fair listing price or help negotiate in a real estate transaction. Here we will explore the value of a Building Condition Assessment and give you an idea of what to expect.
What is a Building Condition Assessment?
Before we dive into the benefits, let's first define what a Building Condition Assessment is. A Building Condition Assessment is a comprehensive evaluation of a building's physical condition. It involves a thorough inspection of the building's structure, systems, and components, such as the roof, HVAC, plumbing, and electrical systems. The assessment also includes a review of the building's maintenance history and any potential issues that may arise in the future. The Assessor will compile all the information into a final BCA report.
Who needs a Building Condition Assessment?
There are usually a few scenarios that trigger the need for a Building Condition Assessment which typically includes the following:
- Selling/buying a commercial or industrial property to ensure a fair market price and understand any future maintenance required. The lender may also require a BCA for a loan application.
- Planning future maintenance as an overall property management strategy (i.e. renovate, demolish)
- A property owner evaluating the property damage caused by a tenant
Factors That Affect the Cost
The cost of a Building Condition Assessment can vary depending on several factors. These include the size and complexity of the building, the type of building (commercial, residential, industrial), and the location of the building. For example, a larger building with more complex systems will require more time and resources to assess, resulting in a higher cost. Similarly, a building located in a remote area may require additional travel expenses for the assessors, which can also impact the cost.
The Value of a Building Condition Assessment
Do not underestimate the value a Building Condition Assessment. Making an informed decision about the current state of the property includes:
- Evaluating the cost between replacement or demolition
- Planning monthly commercial condo fees to offset future maintenance expenses.
- Property management strategy to schedule regular maintenance.
- Evaluate damage done by a tenant.
- Listing a property at market price.
- The purchaser can negotiate a better price for the property.
- Uncover any unforeseen minor or major deficiencies.
Additional Services
In addition to the Building Condition Assessment, you may also want to consider additional services that can provide more detailed information about the surrounding property. This service includes a Phase One Environmental Site Assessment, which involves an investigation into potential environmental contamination. A Phase One ESA is a risk management tool that comes at an additional cost, but it can provide valuable contamination potential to help you make informed real estate decisions. Lenders will often require a Phase One ESA during a real estate application process.
Why Trust Bolson for Your Building Condition Assessment
A Building Condition Assessment is a worthwhile investment for any property owner and real estate buyer, as it can provide valuable information about the condition of a building and help you plan and negotiate. If you are considering a Building Condition Assessment in Alberta, be sure to reach out to Bolson Engineering and Environmental Services. Our regional expertise in the Alberta commercial real estate market will ensure a streamlined real estate transaction and/or property management strategy.
