Risk Reduction Chart showing how risk can vary up/down given the level of detail provided by a Commercial Property Inspection

Real Estate Purchase Risk Reduction

In reference to the chart above, the degree of uncertainty or risk associated with a commercial real estate (RE) transaction increases/decreases according to the level of detail or due diligence afforded by a Commercial Property Condition Assessment aka PCA. Though somewhat arbitrary, on a scale of 1 to 10, the least amount of risk afforded by a Baseline PCA is somewhere around (5) at best.

What's least understood in conducting a Baseline PCA is that realistically the risk factor can be much higher depending upon variables such as age, authenticity and availability of information, etc. Once more, in looking at the chart above, it should also be noted that the level of uncertainty or risk factor associated with any commercial property real estate transaction can never be 'Zero' regardless of the level of detail or due diligence afforded by a PCA.