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History of Property Condition Asssessments

Writer's picture: Built EngineersBuilt Engineers

The evolution of Property Condition Assessments (PCAs) began in the early 1990s, initially in response to the activities of the Resolution Trust Corporation and the growing interest of pension-fund type investors in commercial real estate. Over time, obtaining a PCA became standard practice during property purchases or refinancing transactions. As demand increased, so did the formalization of the PCA process, though inconsistencies persisted.

In 1995, Standard & Poor's Guide provided further definition to the PCA process. The year 1999 marked a significant milestone with ASTM's release of standard 2018-99, setting a benchmark for industry practice. The subsequent surge in securitized lending, particularly in commercial mortgage-backed securities since 2000, propelled the necessity for PCAs as a prerequisite for closing deals.


The Commercial Standard Operating Procedures (ComSOP), established as an International Standard on November 24, 2008, and last revised in 2019, now supersedes all prior editions. These revisions have driven advancements in the scope, methodology, and cost of PCAs. ASTM 2018-15 and ComSOP 2018 are widely accepted within the industry as the current standards for content and practice.


PCAs serve diverse stakeholders in the real estate market, aiding in financial modeling by providing unbiased assessments of anticipated capital work at a property. However, these assessments can also reflect the ownership strategy of the property holder. For instance, a long-term owner such as a pension fund might approach capital projects differently compared to an owner with a shorter-term investment horizon. PCA authors strive to grasp these ownership objectives, integrating them into projected project lists.

Individual property owners, buyers, and lessees alike commission PCAs to gain insight into general property conditions before transactions or leasing agreements. They also rely on PCAs at lease termination to validate maintenance obligations and facilitate deposit recovery processes.

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