"Property / Environmental Assessment
For Commercial Property Renters
Introduction
As a participant in a commercial real estate Triple Net Lease you will typically be required to pay all or some of the property expenses associated with maintenance and repairs. By having Korth Engineering perform an assessment of the property, you will learn about possible costly problems before signing the lease.
Question: What is a Property / Environmental Assessment for a Commercial Property renter?
Answer:An inquiry of visually observable property conditions and limited historical records review for the purpose of determining "noteworthy" conditions applicable to a potential commercial property renter.
Question: What are the components of this type of Assessment?
Answer: The primary components are:
- Records Review
- Interviews
- Site Visit
Question: How can this Property Assessment benefit a commercial property renter?
Answer: This Property Assessment formally documents property conditions and various environmental regulations potentially applicable to a prospective commercial property renter!
Question: Is this Property Assessment legally required?
Answer: No - the assessment is conducted by the prospective commercial property renter for their own benefit and use such as lease negotiations.
Question: If this Property Assessment is not required why would I, as a commercial property renter, request a report?
Answer: A commercial real estate Triple Net Lease typically requires the tenant to pay some or all of the property expenses associated with maintenance and repairs. This report reviews the general type and estimated age of various building and site components, then as applicable provides estimated repair and/or replacement costs based on general industry guidelines.
Applicable Standards
Question: Are there particular standards applicable to this assessment?
Answer: Selected portions of the following standards applicable to renters of commercial properties are utilized:
- Property Condition Assessments
(PCA - ASTM E 2018-01) - Environmental Site Assessments
(ESA - AAI Rule) - Various Environmental Regulations
Question: Is this Property Assessment considered a PCA, ESA or Environmental Compliance review?
Answer: No - only selected portions of a PCA, ESA and various Environmental Compliance Regulations applicable to renters of commercial property are incorporated.
Question: Is an example report available?
Answer: Upon request Korth Engineering, LLC will review with the prospective client specifics of how a Property Assessment is conducted; elements included within a report and how this investigation can have value.
Question: Who is Qualified to conduct this type of Property Assessment?
Answer: Since this Property Assessment is a mixture of selected components of various standards no particular inspector certifications apply. However, an inspector needs to be familiar with PCA´s, ESA´s and general Environmental Compliance based on a combination of relevant experience and education.
Question: What are the qualifications of Korth Engineering, LLC to conduct this type of Property Assessment?
Answer: Registered Professional Engineer, Education and Relevant Experience.
Question: What does this Property Assessment cost?
Answer: Rates vary depending upon the size and complexity of the property. Korth Engineering, LLC will provide a fixed price quote prior to conducting a Property Assessment.
Commercial property renters are typically individually responsible for compliance with a variety of environmental regulations.
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