New ASTM Standard for Property Condition Assessments: What property owners, investors, and lenders need to know

Mar 04, 2024

Our charge at Marx|Okubo is always to stay on top of current technical expertise, trends, and requirements. We’d like to share the following with our clients to raise awareness and keep them up to date on the latest developments in the industry.

There is a new edition of the ASTM standard for PCAs that was published at the beginning of this year. We want to make sure property owners, investors, and lenders are aware of the changes in the updated standard and understand how they may be impacted.

KEY CHANGES TO NOTE

What it’s called

The new standard is entitled ASTM E2018-24. This document represents the minimum baseline standards for conducting a PCA. The prior version that the industry generally has relied on was the 2015 edition.

What has changed

One of the key revisions is to incorporate the end “user” into the standard. In other words, think of the standard as a baseline guide, and the user needs to work with a knowledgeable AEC industry consultant to define the specific scope of the PCA, which can be nuanced and vary depending on the specific needs of the client and the nature of the property.

To elaborate further, the 2024 revision to the standard holds a new significance: With this increased emphasis on communication, the necessary collaboration between the user (property owner, investor, or lender) and consultant will help refine the scope of the PCA so it better meets the needs and expectations of the user.

For example:

For a single, newly constructed warehouse building, it may be straightforward enough that one architect or engineer can effectively evaluate the property to satisfy the requirements for a lender. Alternatively, a client considering acquiring a 30-story, historic, high-rise, mixed-use building in a high-risk seismic zone likely needs a larger team with dedicated, often multidisciplinary, specialists to properly evaluate and understand all of the longer-term risks related to owning the property. The dedicated team members can spend more time focusing on their areas of expertise when evaluating the property and also bring their specialized knowledge and insights to the future owner as they provide their report findings and recommendations. Understandably, a single architect or engineer does not have the time, resources, or expertise to evaluate all aspects of such a large/complex project to the level an owner likely requires.

Navigating the new ASTM standard and ensuring compliance

Our team at Marx|Okubo has proactively implemented the changes to the standards in our PCA process and report templates to make them consistent/compliant with the new standard. We are also helping our clients understand and handle the changes in the standard so they can update their own criteria and ensure they are most informed, compliant, and have the best project outcomes.

Need assistance navigating the new ASTM standard? We are here to help. Our team serves as a trusted resource to help property owners, investors, and lenders evaluate and define the specific needs for their PCAs. Bringing a multidisciplinary, holistic perspective to projects, Marx|Okubo is well-versed and prepared to discuss the ASTM standard changes and how best to implement them.

If you have any questions or want to learn more, please contact Tommy Fong (tommy_fong@marxokubo.com), Vice President - Technical Services.