Property condition assessments (PCAs) are critical for real estate investors and managers. First, they allow you to check the physical condition of a building. Then, the PCA software data you collect helps understand its deficiencies. This helps plan for future capital investments.
Building components are key elements of PCAs. These may include HVAC, elevators and safety systems, structural aspects including roofs and pavement. Ultimately, PCAs show “what’s under the hood” for a building. They are typically used in real estate asset management. They also help with acquisitions, appraisals and mortgage approvals.
PCA and Real Estate Software: What’s New?
It’s a well known and standardized report in property management. However, that doesn’t mean there isn’t room for improvement. Over the last few years, software and technology have enhanced the PCA process. Internet of Things (IoT) technology can help monitor building components in real-time. This provides building managers with plenty of detailed performance data for PCAs. Software like 4tell™’s Assessment Solutions maps to ASTM E2018 PCA, so you can ensure assessments meet the industry standard.
Mobile applications can help “boots on the ground” property managers. It allows them to take photos of building components or monitor issues. Then, it uploads this information to a central database. At the portfolio level, PCA software data can track building conditions over time. It also helps manage capital investments and planning.
PCA Software Data and Real Estate Executives
PCAs are inherently complex reports involving hundreds of individual data points. For real estate executives, PCAs can be overly detailed and technical. They may feel that they are something best left to property managers and facility/engineering experts. However, there are some key points in PCAs that real estate executives should focus on:
When a PCA is completed, executives should focus on total value. That includes:
- the value of the deficiencies in the building
- the value of major components with deficiencies
- their total cost of maintenance and ownership over time
PCA software data can be very useful aligning capital investments with larger financial priorities.
A PCA is typically a snapshot in time of current building conditions. The results you get from a PCA have the most benefit when you pair them with capital planning software. After a PCA, executives can analyze the results to prioritize capital investments. This may include investment optimization, scenario planning and financial analysis.
Portfolio Level Impacts
Is your organization looking to develop a multi-asset capital plan? If so, understanding the PCA software data at the portfolio level can help. Compare your PCAs among the properties in your portfolio. Then, use this to develop more meaningful business priorities. It also helps understand the relative scale of individual building deficiencies.
PCAs are usually used to assess physical and structural building conditions. But more and more, they are looking at green measures as well. This may include energy use and intensity. This helps executives understand the financial and environmental costs of deficiencies.
The Oregon State Department of Energy looks at Energy Efficiency Measures (EEMs). These often take place after a PCA. They involve physical building changes that make a building more energy efficient. EEMs focus on improving property infrastructure. This may include updates to the building envelope, heating and cooling, lighting and water use.
PCA Analysis: Derive Better Insights With Software
Are you a real estate executive or manager who wants to improve your PCA process with technology? Make the most of your PCA software data with a software platform that helps you derive meaningful insights and financial results. Contact 4tell™ Solutions for more information.
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