The Top 5 PCA Defects in Houston & the Texas Triangle (ASTM E2018 Guide)

Howdy,

Commercial real estate in Houston and the Texas Triangle moves fast, but the buildings themselves often tell a different story — one of aging systems, deferred maintenance, and costly surprises. That’s why serious investors rely on Property Condition Assessments (PCAs) aligned with ASTM E2018 before committing capital.

A PCA isn’t just an inspection — it’s a due-diligence tool that reveals risk, clarifies future costs, and protects your investment strategy. After performing PCAs across office, industrial, retail, and flex properties throughout Texas, these are the top defects that consistently show up and carry the biggest financial impact.

“PCA findings don’t kill deals — they prevent investors from walking into the wrong ones.”

Before We Begin: What ASTM E2018 Requires

A proper PCA follows the ASTM E2018-15 Standard, which outlines expectations for site observations, building systems, interviews, and reporting. If you want a breakdown of the standard, here’s the guide:

ASTM E2018 — Property Condition Assessment Overview

Now, let’s dive into the top defects investors should expect — and plan for — before acquiring a commercial property in Texas.

1. Parking Lot Failures, Drainage Issues & Liability Risks

The condition of the parking lot is often the clearest indicator of a property’s long-term maintenance history. In PCAs across Houston, Dallas–Fort Worth, Austin, and San Antonio, we consistently see:

• Alligator cracking and asphalt failure
• Ponding water and poor drainage patterns
• Trip hazards in sidewalks and flatwork
• ADA non-compliance
• Missing or faded striping and safety markings

Parking lots often represent one of the largest Cost-to-Cure items in a PCA — sometimes six figures — and they directly impact curb appeal, liability, and tenant satisfaction.

2. HVAC Systems at End of Service Life

In Texas, HVAC systems work harder than almost anywhere else in the country. During PCAs, we frequently observe:

• Units 15–25+ years old still in operation
• Deferred maintenance and missing service logs
• Mismatched systems installed at different times
• Rust, leaks, improper condensate management

One rooftop unit failing is inconvenient. Several failing within the first year of ownership can crush a property’s annual cash flow if not anticipated — which is exactly why PCA HVAC findings are essential to accurate capital planning.

3. Flat Roof Wear, Ponding, and Penetration Failures

Flat roofs dominate commercial properties, especially in retail and industrial buildings. On PCAs, we often document:

• Aging membranes at or beyond service life
• Ponding water from improper slope
• Failed or deteriorated sealants
• Damaged or missing flashing
• Rooftop equipment causing membrane damage

Roofing defects are among the highest-cost items in PCA reports. A flat roof leak can shut down operations, disrupt tenants, or damage inventory — making planned replacement timelines absolutely critical.

4. Moisture Intrusion & Interior Damage

Stained ceiling tiles, bubbling paint, efflorescence, and musty odors are common indicators of deeper issues. During PCAs, these symptoms often point to:

• Long-term roof leaks
• HVAC condensate drainage failures
• Plumbing leaks above ceiling grids
• Poor indoor air quality or potential microbial growth

While cosmetic on the surface, moisture intrusion can lead to liability concerns, tenant interruption, and building-wide IAQ issues if left unaddressed.

5. Foundation Movement & Expansive Soil Behavior

Texas is home to some of the most expansive clay soils in the U.S. Commercial buildings are subject to the same movement patterns as homes — but on a much larger scale. Common PCA observations include:

• Differential settlement
• Slab cracking or displacement
• Masonry separation
• Poor grading affecting movement

Foundations rarely fail suddenly — they drift over years due to moisture imbalance and soil expansion. PCA evaluations document this movement and help investors anticipate future settlement-related repairs.

Honorable Mention: Electrical & Life Safety Concerns

While not always the most expensive, electrical and life-safety findings represent immediate risk exposure for owners. Common PCA observations include:

• Damaged panels or outdated breakers
• Improperly terminated wiring
• Missing emergency lighting
• Inadequate or blocked egress paths

These issues affect insurance, compliance, and tenant safety — making them critical to understand before acquisition.

Neil Arnold

Commercial Property Inspector / PCA Specialist

Imperial Pro Inspection LLC — Commercial Division