Due Diligence or Property Condition Assessment (PCA) would include a review of building systems to evaluate deferred maintenance items that can materially affect the operation and value of a property. Building systems would include the foundation, roof, HVAC, electrical, plumbing, vertical transportation, and building envelope (windows and walls).
The report will often include a cost table showing the immediate and necessary future repairs and their estimated associated costs. As an example the table would show than in 2 years the outside will need paint and that in 5 years the parking lot will need resurfacing….etc.
Additionally it is common for a Due Diligence or PCA to include securing a copy of the Title Insurance policy regarding the ownership of the property and the encumbrances to which it is subject, and requiring the owner to secure an attornment from each tenant establishing agreement as to lease terms currently in force, and to research the zoning laws applicable to the property, building code compliance of the premises, the existence of any special assessments of property taxes applicable to the property.
These reports are required as part of securitized lending CMBS (Commercial Mortage Backed Security).
See Due Diligence under Services/Civil Engineering/Due Diligence for additional requirements.