Conquering Capital Needs
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|In buying, selling, lending on, or owning a commercial property, when do you conduct a Capital Needs Assessment, who should do it, what should it entail, and how much should it cost? BOMA hosted a breakfast seminar on the topic at Reservoir Place in Waltham on Thursday. Led by EBI Consulting?s David Stewart, the group of property managers and others heard that such surveys may require a team of specialists led by an objective, thorough professional. The goal is to determine the probable cost to maintain, renovate, or upgrade the property over a given time period. As Dave says: What will it take to keep, sell, acquire, or reposition the property? Even as a seller, it establishes trust to provide buyers with an accurate picture of specific problems and repair costs.|
|The report should be done according to established industry standards (ASTME 2018-08) and be organized and presented so it's understandable at a glance yet sufficiently detailed for today's careful owner, investor, lender, or buyer. It should feature estimates of the useful remaining life of building components—roof, HVAC, windows—tailored to the individual building. For instance, deferred maintenance may have shortened the customary life expectancy of some equipment. The CAN should include material to support the estimates in a defensible argument and explain the evidence used to come to conclusions. In response to CBRE's Kelly Farrell Crosby (woman in black) Dave says repair plans can be done over several years to spread out the costs.|