Below Are Some Common Questions We Are Asked Here At Nordic Inspections
Choosing the right commercial property inspection depends on the type of property, the purpose of the evaluation, and the level of due diligence you need. Below are answers to common questions about Nordic Inspections’ Commercial Building Inspections and Property Condition Assessments.
A commercial building inspection is a visual evaluation of the readily accessible systems and components of a commercial property.
The inspection is intended to help identify significant observed deficiencies, safety concerns, maintenance issues, and conditions that may warrant repair or additional evaluation.
Depending on the property and agreed scope, the inspection may include the site and exterior, roofing, structural components, electrical systems, plumbing, heating and cooling systems, interior areas, and other major building systems.
Following the inspection, Nordic Inspections provides a detailed report documenting the conditions observed at the property.
A Property Condition Assessment, or PCA, is a commercial real estate due diligence assessment used to evaluate and report on the physical condition of a property.
Nordic's PCA process is based on the applicable procedures of ASTM E2018-24, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process.
Unlike an inspection based primarily on conditions observed during the site visit, a PCA combines a property walk-through with available documentation, property research, information from knowledgeable parties, and evaluation of material physical deficiencies. The findings are documented in a Property Condition Report (PCR) and may include preliminary Opinions of Costs for qualifying deficiencies.
ASTM describes a PCA as a process involving property observations, interviews, and review of available documentation for the purpose of developing an opinion and preparing a PCR.
Both services evaluate the physical condition of a commercial property, but the scope and purpose are different.
A Commercial Building Inspection primarily focuses on the property's observable physical condition and identifying significant deficiencies or concerns.
A Property Condition Assessment provides a broader commercial real estate due diligence process. In addition to the property walk-through, a PCA may include review of available property records, drawings, maintenance information, warranties, repair histories and other documentation; interviews or inquiries with knowledgeable parties; identification of material physical deficiencies; and preliminary Opinions of Costs for qualifying deficiencies.
A PCA is typically the more appropriate service when a client needs a structured assessment of both the property's condition and the potential financial significance of identified physical deficiencies.
Website note: I would put your comparison table directly underneath this FAQ answer. That's a natural place for it while still keeping the smaller two-service comparison near the top of the page.
It depends on what you need to know about the property.
A Commercial Building Inspection may be appropriate if your primary objective is to understand the building's current observable condition and identify significant problems, safety concerns, or repair needs.
A Property Condition Assessment may be more appropriate if you are purchasing, financing, investing in, or performing broader due diligence on a commercial property and need additional information regarding documentation, property history, material physical deficiencies, and potential repair costs.
Not every commercial property requires the same level of due diligence. Property type, size, age, complexity, intended use, and the client's objectives can all affect the appropriate scope.
If you're unsure, contact Nordic Inspections and tell us about the property and your objectives. We can help determine which service is the better fit.
This is also consistent with ASTM's approach: the guide specifically recognizes that the appropriate level of assessment can vary based on the property's characteristics, the user's objectives, risk tolerance, schedule, and budget.
Nordic Inspections can evaluate many types of commercial and investment properties, including office buildings, retail properties, warehouses, industrial buildings, multifamily properties, mixed-use buildings, restaurants, medical and professional buildings, commercial condominiums, schools, churches, and owner-occupied business properties.
Because every commercial property is different, the inspection scope may be adjusted based on the property's size, use, complexity, building systems, and the client's objectives.
Depending on the property and agreed scope, the inspection may include:
- Site conditions, grading, drainage, parking areas and walkways
- Structural components
- Roofing and roof drainage
- Exterior walls, doors, windows and other building-envelope components
- Plumbing systems
- Heating, cooling and ventilation systems
- Electrical service and distribution
- Fire and life-safety components
- Interior common areas and representative interior spaces
- Other material building systems applicable to the property
Commercial properties vary considerably, so the exact scope will depend on the property and the service being performed.
These categories also closely track the major systems addressed by ASTM's baseline PCA walk-through procedures.
Not necessarily.
Commercial properties often contain many repetitive or similar components. Depending on the scope and property type, the inspection may use representative observations rather than inspecting every individual recurring component or space.
For example, a large property may contain dozens of HVAC units, windows, restrooms, apartments, offices, tenant spaces, or other similar components. Representative observations allow the inspector to evaluate a reasonable sample to develop an understanding of the property's general condition.
For PCAs, this is specifically contemplated by ASTM E2018-24, which states that the field observer is not expected to survey every recurring component or system.
When available and applicable, property documentation may include items such as:
- Certificate of Occupancy
- Building and fire department information
- Recorded building or fire code violations
- Construction drawings and specifications
- Previous Property Condition Reports
- Safety inspection records
- Roof, HVAC, boiler and other applicable warranties
- Information regarding the age of major building systems
- Historical repairs and replacement information
- Pending repair proposals or contracts
- Planned improvements
- Existing accessibility evaluations
- Occupancy information
- Other relevant property records
The availability of documentation varies from property to property. A PCA does not guarantee that all requested records will exist or be made available.
ASTM identifies these and other property records as information that can assist the consultant in understanding the property and identifying material discrepancies or deficiencies.
The physical inspection tells us what can be observed at the property on the day of the assessment. A knowledgeable owner, property manager, maintenance person, or other representative may have additional information that cannot be determined visually.
This can include information about:
- Previous repairs and replacements
- Known leaks or recurring problems
- Ages of major systems
- Preventive maintenance
- Warranties
- Pending repairs
- Planned improvements
- Previous system failures
- Significant repair costs
This information can provide important context for conditions observed during the property walk-through.
ASTM specifically includes inquiries concerning historical repairs and replacements, preventive maintenance, known deficiencies, system ages, warranties, and pending improvements as part of the interview process.
That does not necessarily prevent us from completing the assessment.
We make appropriate inquiries for information relevant to the PCA. If requested information is unavailable, not provided, or cannot reasonably be obtained within the assessment timeframe, that limitation can be documented in the Property Condition Report.
The PCA is then based on the information reasonably available, along with the conditions observed during the property walk-through.
The Property Condition Report, or PCR, is the written report produced from the Property Condition Assessment.
It brings together the information developed through the property walk-through, document review, interviews or inquiries, and evaluation of physical deficiencies.
The report is intended to provide the client with a practical understanding of the property's physical condition, significant deficiencies, suggested remedies, and applicable preliminary Opinions of Costs.
ASTM specifically defines the PCR as the written report documenting the findings and opinions developed during completion of the PCA.
A PCA may include preliminary Opinions of Costs for qualifying material physical deficiencies.
These costs are intended to provide an order-of-magnitude budgetary projection that helps the client understand the potential financial significance of identified deficiencies. They are not contractor bids, quotations, or guarantees of the actual cost to complete the work.
Actual repair costs can vary based on final scope, quantities, materials, contractor selection, market conditions, concealed conditions, design requirements, and many other factors.
ASTM itself characterizes Opinions of Costs as preliminary, order-of-magnitude budgetary projections rather than exact construction estimates.
No.
The purpose of ASTM-style Opinions of Costs is not to assign a price to every maintenance item or minor defect observed at a property.
Under the ASTM E2018-24 baseline, individual cost items below $3,000 are generally omitted. An exception exists when more than four separate similar items individually fall below the threshold but collectively exceed $10,000. Material life-safety and recorded building or fire code violations also warrant appropriate consideration regardless of cost.
Routine maintenance, cosmetic conditions, minor repairs, tenant improvements, and property upgrades generally are not the focus of PCA Opinions of Costs.
PCA cost opinions may be separated based on the urgency of the identified physical deficiency.
Immediate Costs generally relate to conditions involving an imminent life-safety concern, conditions that could contribute to building-system failure or substantially increased repair costs if left uncorrected, and material recorded building or fire code violations.
Short-Term Costs relate to material repairs or replacements that may not require immediate action but should be addressed on a priority basis.
Long-term capital replacement projections can also be developed when included in the agreed scope.
A PCA can consider the apparent or reported age, observed condition, maintenance history, and typical expected useful life of major building systems when appropriate.
However, Remaining Useful Life is an opinion, not a guarantee.
The actual service life of a roof, HVAC unit, pavement system, or other building component can be affected by installation quality, maintenance, climate, usage, previous repairs, operating conditions, and many other factors.
ASTM expressly describes remaining useful life as a subjective opinion and states that it is not a guarantee of remaining service life.
No.
A Commercial Building Inspection or baseline PCA should not be confused with a comprehensive building-code, fire-code, zoning, ADA, or regulatory compliance inspection.
Observable safety concerns or information regarding recorded material building or fire code violations may be identified or discussed when applicable, but determining comprehensive compliance with applicable codes and regulations generally requires a separate specialized evaluation.
ASTM expressly states that a PCA is not a warranty or guarantee of compliance with building codes, fire codes, life-safety codes, ADA, FHA, environmental regulations, zoning requirements, or other regulatory requirements.
A detailed ADA compliance survey is not automatically included in a baseline PCA.
Accessibility is considered an additional or out-of-scope consideration under ASTM E2018-24 unless specifically included in the agreed scope. ASTM also provides an optional abbreviated ADA screening process, but even that is a limited visual screening rather than a comprehensive determination of ADA compliance.
If accessibility is an important concern for your transaction or property, discuss it with us before the assessment so the appropriate scope can be established.
Not automatically.
Environmental concerns such as mold, asbestos, hazardous materials, indoor air quality, and other environmental conditions generally fall outside the baseline scope of a Property Condition Assessment. ASTM expressly treats environmental matters as out-of-scope considerations.
Nordic Inspections offers certain environmental and specialty inspection services separately. If you have specific environmental concerns, let us know so we can discuss which additional services may be appropriate.
Depending on the property and circumstances, additional inspection or testing services may be available.
Nordic Inspections offers specialty services that can complement a commercial property inspection or PCA, including services such as radon testing, mold and indoor environmental assessments, indoor air quality testing, sewer scope inspections, infrared thermography, and foundation elevation measurements.
These are separate services and are not automatically included in the standard scope of a Commercial Building Inspection or Property Condition Assessment.
No inspection can identify every possible condition.
Commercial Building Inspections and PCAs are visual, nonintrusive evaluations performed at a specific point in time. Concealed conditions, inaccessible areas, intermittent problems, underground systems, conditions hidden by finishes or stored materials, and defects that require destructive investigation or specialized testing may not be identifiable during the inspection.
ASTM recognizes this limitation directly: a PCA is intended to reduce, not eliminate, uncertainty regarding physical deficiencies and building-system performance.
Generally, no.
The inspection is primarily visual and nonintrusive. Inspectors generally do not remove building finishes, dismantle equipment, perform exploratory demolition, or damage the property to investigate concealed conditions.
If an observed condition indicates that additional investigation is warranted, the report may recommend further evaluation, testing, exploratory work, or consultation with an appropriate specialist.
Inspection time depends on the property's size, age, use, condition, number of buildings, complexity of the building systems, accessibility, and the scope of services requested.
A relatively small commercial building may require substantially less time than a large multifamily, industrial, retail, or multi-building property.
Once we know more about the property and the requested scope, Nordic Inspections can provide additional information regarding scheduling and anticipated inspection requirements.
Pricing depends on the property and scope of services.
Factors may include the property's size, age, use, number of buildings, complexity, location, occupancy, accessibility, requested due diligence, document-review requirements, specialty services, and whether a Commercial Building Inspection or Property Condition Assessment is requested.
Contact Nordic Inspections with the property information and your objectives, and we can provide a proposal appropriate for the assignment.
Report delivery time depends on the size and complexity of the property and the scope of the assessment.
Property Condition Assessments may require additional time because the process can involve reviewing property documentation, information obtained from third parties, and preparation of Opinions of Costs in addition to the physical property inspection.
Your anticipated reporting timeframe can be discussed when the inspection is scheduled.
A commercial property inspection can provide valuable information before purchasing or investing in commercial real estate.
The assessment can help identify significant physical deficiencies, deferred maintenance, aging building systems, safety concerns, and other conditions that may affect ownership or future expenditures.
For clients seeking broader commercial real estate due diligence—including property documentation, interviews, material physical deficiencies, and preliminary repair-cost information—a Property Condition Assessment may be the more appropriate service.
PCAs can be useful to a variety of commercial real estate participants, including:
- Buyers and investors
- Property owners
- Lenders
- Asset and portfolio managers
- Property management companies
- Commercial real estate professionals
- Organizations evaluating a property before acquisition or significant investment
The appropriate scope should be based on the client's objectives and the nature of the property.
Yes. Nordic Inspections provides commercial building inspections and Property Condition Assessments in Fargo, North Dakota; Moorhead, Minnesota; and surrounding communities.
Contact us with the property address and information about the building, and we can determine availability and the appropriate inspection scope.
Contact Nordic Inspections and provide the property address along with any available information about the property, such as building size, property type, number of buildings, occupancy, and the purpose of the inspection.
If you're unsure whether you need a Commercial Building Inspection or Property Condition Assessment, that's okay. Tell us what you're trying to accomplish, and we can help determine the appropriate service.