The increased attention that financial institutions, investors and real estate owners pay to risk analysis regarding the purchase and sale of real estate assets has led to growth in the requests for technical due diligence reports. With over 10 years of experience in the market, Colliers has provided such services that describe in detail the physical condition of a property for almost 1.4 million square meters of space, of which about 854,000 square meters are in industrial projects.
“The list of technical deficiencies resulting from the technical due diligence report aims to inform about the significant repair costs for the main elements of the construction, such as structure and foundation, architecture, facade, roof, mechanical and electrical installations, interior finishes, equipment. Finally, the technical analysis provides a realistic view on the construction conditions from a technical point of view, but also a clear estimate of the repairs that need to be made to comply with the initial design and quality standards. This analysis also offers a level of protection, being a solid basis for price negotiations", explains Silvia Rusei, LEED Green Associate within Colliers.
In the pandemic year, the demand for technical due diligence services remained constant, especially for industrial spaces, Colliers consultants note. In fact, out of almost 1.4 million square meters of various spaces for which Colliers has provided technical services in more than 10 years of market presence, 62% are in industrial projects, and the rest are retail spaces (24%), offices (12%) and hotels (about 2%).
Among companies for which Colliers has provided such services over time are CTP - a full-service international real estate developer with more than 6.3 million square meters of Class A properties in more than 70 strategic locations across Europe, but also banks such as BRD Groupe Société Générale or Banca Transilvania. For CTP, Colliers provided technical services for 34 industrial warehouses in Bucharest, Arad, Timisoara and Caransebes with a cumulative area exceeding half a million square meters.