Commercial Property Condition Reports (PCR) also known as a “commercial property dilapidation reports” are a detailed record of your property’s state at a fixed point in time.
They provide an overview of the condition of a property and include details on items like the walls, floors, carpets, fixtures & fittings. Generally, a commercial PCR would be reviewed and agreed on by both parties involved in the lease agreement.
Think of it as a safety net. Whether you’re managing a retail lease or an office space, a clear, well-documented commercial condition report protects everyone involved.
In Western Australia, while commercial property condition reports (PCRs) are not legally mandated, they are strongly recommended as a best practice for both landlords and tenants.
For more information, visit the WA Department of Commerce website.
Why Condition Reports Matter for Commercial Properties
A commercial property condition report helps you avoid costly surprises.
They create a clear, unbiased record of the property’s baseline condition at a specific point in time. If anything changes during the lease term, you’ll have documented evidence to refer to.
They can be used to check fair wear and tear or damage to the property. Making it clear who is responsible for the maintenance or repairs. The added benefit is that it should also highlight maintenance issues before they become major repairs.
Many commercial leases include clauses requiring tenants to restore the property to its original condition upon vacating. A PCR can help define the extent of these obligations, reducing ambiguity and potential conflicts.
In case of disagreements, a well-documented PCR can serve as evidence in legal proceedings or negotiations, aiding in fair and efficient dispute resolution.
At the end of the day a properly documented commercial lease condition report keeps both parties aligned from day one to handover.
At Vast Commercial Property, these reports are standard — and we don’t stop at one per lease. We inspect your property twice a year as part of our hands-on approach to commercial property management in Perth.
What’s Included in a Commercial Condition Report
At minimum, a standard property condition inspection for commercial leases should include:
- Interior and exterior condition (walls, flooring, ceilings, paintwork)
- Fixtures and fittings (lighting, plumbing, air conditioning, etc.)
- Doors, windows, common areas, and parking
- Notes on wear and tear, existing damage, or maintenance concerns
- Clear photo evidence of each area inspected
This can slightly vary based on what kind of condition report is being completed, generally there are three main types of commercial condition reports:
- Entry Report – at the start of a commercial tenancy. This focuses on capturing details about the initial condition of all assets.
- Routine Inspections – intervals throughout, ideally at least twice a year. This captures the change in conditions over time and flags any maintenance that may need attention.
- Exit (Outgoing) Report – at the end of the tenancy. This captures a final picture of what condition things were left in. Allows the bond to be released if no issues are identified.
For a basic idea of what is included you can review the residential property condition report document. It covers most of the common elements however a well-constructed commercial property report should go into much more detail.
What makes our PCRs different?
- Two inspections a year (most providers only offer one)
- Reports written by experienced directors, not junior staff
- Walkthroughs where we explain findings in plain English
- Action steps if something needs attention. Not just a list of problems
Commercial Lease Condition Report Providers
Engaging a professional to conduct the PCR can provide an unbiased assessment of the property’s condition. Generally, this leads to less issues compared to doing the report yourself.
When choosing a provider, it’s important to find someone who understands the property, the lease, and the people involved.
Here’s what to look for:
- Commercial experience – Residential and commercial leases are very different. Choose someone who understands the legal and operational side of commercial property.
- Attention to detail – A good report will document everything clearly, with supporting photos and specific notes on condition.
- Consistency – One inspection a year isn’t always enough. Properties change, tenants change and reports should reflect that.
- Personal service – You want a provider who knows your property, not just your file number.
That’s where we come in.
At Vast Commercial Property, our condition reports are part of a bigger commitment to hands-on, relationship-driven commercial property management in Perth. You’ll deal directly with us, Eddie and Greg. We take the time to walk through your property, identify risks early, and follow up with clear, useful advice.
We’ve even represented clients at strata meetings, worked through complex lease issues, and helped both landlords and tenants reach better outcomes. All because we genuinely care.
Benefits for Landlords and Tenants
A well-prepared commercial property condition report protects both parties in a lease not just the landlord.
| Landlord (Lessor) | Tenant (Lessee) | |
| Baseline Record | Clear baseline for assessing damage or wear at lease end. | Transparency around the property’s state before move-in. |
| Dispute Protection | Strengthens your position if there’s a dispute. | Proof of condition if issues are raised later. |
| Financial Advantage | Easier bond recovery and support for insurance/depreciation claims. | Fair lease-end negotiations – no liability for pre-existing issues. |
| Maintenance Planning | Helps identify issues early and manage long-term asset value. | Confidence knowing what’s expected from day one. |
| Professionalism & Trust | Sets clear expectations with tenants. | Builds trust and supports a smoother tenancy. |
A quality retail lease condition report sets the tone for a professional relationship from start to finish.
A Smart Step for Long-Term Protection
A commercial property condition report supports better relationships, and gives everyone involved peace of mind. Whether it’s a retail shopfront, an office space, or an industrial unit, having a clear, accurate record of condition helps you stay ahead of issues and avoid unnecessary conflict.
At Vast Commercial Property, we don’t just provide reports, we build relationships. Whether you’re a landlord, tenant, or strata group, we take the time to understand your needs and deliver real value, not just paperwork.
Get in touch today to chat with Eddie or Greg and find out how our condition reports can help protect your property — and your peace of mind.
