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Corporate Due Diligence

How to Evaluate Potential Office Buildings

Selecting the right office building requires systematic evaluation across technical, compliance, commercial and operational dimensions. A structured approach helps organisations avoid costly mistakes.

Good Practice CRE Team Pending

Why Systematic Evaluation Matters

Selecting an office building is one of the highest-value decisions a corporate occupier makes. A 10-year lease on 2,000 m² in Dhaka represents BDT 15–30 crore in total occupancy cost. Yet many organisations select buildings based on aesthetics, broker recommendation, or landlord relationships — without structured technical evaluation.

A systematic evaluation framework ensures that structural safety, fire compliance, MEP adequacy, accessibility, and operational resilience are assessed before commercial terms are negotiated — not discovered after move-in.

Evaluation Framework: 12 Assessment Dimensions

#DimensionKey QuestionsWeight (MNC typical)
1Structural AdequacyDesign code compliance, age, condition assessment, floor load capacityCritical (pass/fail)
2Fire & Life SafetySprinklers, detection, exits, FSCD licence, fire ratingCritical (pass/fail)
3Electrical SystemsCapacity, earthing, generator, ATS, RCDs, condition reportHigh
4HVAC & IAQCooling capacity, ventilation rate, maintenance, BMSHigh
5Vertical TransportLift count, capacity, condition, waiting time, accessibilityMedium-High
6Water & SanitationSupply reliability, storage, quality, drainageMedium
7Building EnvelopeFacade condition, roof, waterproofing, glazing, ACP safetyMedium
8SecurityAccess control, CCTV, perimeter, guard provisionMedium-High
9AccessibilityWheelchair access, lifts, washrooms, signageMedium
10Location & AccessTransport, parking, flood risk, emergency vehicle accessHigh
11EnvironmentalEnergy rating, waste, green certification potentialMedium
12DocumentationDrawings, permits, certificates, maintenance recordsHigh

Scoring Methodology

Each dimension is scored 1–5:

ScoreMeaningAction
5Fully compliant, well-documented, well-maintainedProceed
4Substantially compliant, minor gaps manageableProceed with conditions
3Partially compliant, significant gaps but remediableNegotiate landlord remediation
2Major deficiencies, remediation costly or uncertainReconsider unless landlord commits
1Non-compliant, safety risk, or fundamentally inadequateWalk away

Rule of thumb: Any critical dimension (structural, fire) scoring 1–2 is a walk-away. Overall weighted score below 3.0 means the building is not suitable without major landlord investment.

MNC Standards vs Local Norms

AspectMNC ExpectationTypical Dhaka BuildingGap
SprinklersFull coverage mandatoryOften absent or partialCritical
Structural assessmentRequired pre-leaseRarely availableHigh
Generator backup100% with ATS ≤ 10sPartial, manual transfer commonMedium
Fire drillsSemi-annual minimumOften never conductedHigh
FSCD licenceValid and currentMany buildings lack oneCritical
AccessibilityFull compliance (ADA/DDA equivalent)Minimal or noneHigh

Practical Evaluation Process

  1. Desktop review — request building documentation before site visit: structural drawings, FSCD licence, occupancy certificate, RAJUK approval, equipment schedules.
  2. Site walkthrough — structured 2–4 hour inspection covering all 12 dimensions with checklist. Minimum team: FM/CRE lead + MEP engineer.
  3. Specialist assessments — if shortlisted: structural condition assessment (ASTM E2018), fire safety audit, electrical EICR, HVAC condition survey.
  4. Scoring & reporting — score each dimension, identify gaps, estimate remediation costs, present recommendation to management.
  5. Negotiation — use findings to negotiate: landlord remediation works, rent reduction, fit-out contribution, or walk away to next option.

References & Sources

  1. ASTM E2018 — Standard Guide for Property Condition Assessments
  2. RICS Red Book — Valuation Standards
  3. BOMA — Building Owners and Managers Association Standards
  4. ISO 31000 — Risk Management Principles and Guidelines
  5. JLL — Corporate Real Estate Best Practices

Insights & Guidance

  • Use a 12-dimension framework to evaluate buildings systematically — don't rely on aesthetics or broker advice alone.
  • Structural safety and fire compliance are pass/fail — score of 1–2 means walk away.
  • Overall weighted score below 3.0/5.0 means the building is unsuitable without major landlord investment.
  • MNC standards (sprinklers, structural assessment, accessibility) significantly exceed typical Dhaka building provision.
  • Desktop document review before site visit saves time and filters out non-starters early.

A 10-year office lease is a BDT 15–30 crore commitment. Selecting the wrong building results in ongoing safety risk, high remediation costs, occupant complaints, and potential lease termination — all more expensive than proper pre-lease evaluation. MNCs like HSBC, Standard Chartered, and Unilever require structured building evaluation as corporate policy.

  • Safety incident — occupying a structurally or fire-deficient building leads to injury, fatality, or forced evacuation.
  • Hidden costs — inadequate MEP systems require tenant-funded upgrades post-lease signing.
  • Business interruption — power failures, lift breakdowns, flooding disrupt operations.
  • Compliance failure — operating without FSCD licence or in a structurally unassessed building violates corporate policy and local law.
  • Reputational damage — operating from a visibly substandard building undermines corporate image.

  • RAJUK-approved construction/occupancy permit
  • FSCD Fire Safety Certificate — current
  • Structural design drawings or structural condition assessment
  • Electrical single-line diagram and EICR
  • HVAC equipment schedule and maintenance records
  • Lift inspection certificates
  • Water quality test report

  • General building condition — entrance, lobby, common areas, washrooms, stairways.
  • Exit routes — clear, signed, unobstructed, panic hardware on doors.
  • Lift operation — wait time, ride quality, condition.
  • Electrical rooms — labelled, clean, adequate clearance.
  • Generator — fuel level, test log, ATS presence.
  • Roof and facade — leaks, cracks, damaged cladding.
  • Parking and access — emergency vehicle access, flood vulnerability.

  • Can you provide structural design drawings or a recent structural assessment report?
  • Is the FSCD Fire Safety Certificate current? Can I see it?
  • What is the generator capacity and fuel autonomy? Is there an ATS?
  • What is the floor live load capacity (kPa)?
  • Are the lifts under comprehensive maintenance contract? What is the availability rate?
  • What is the building's history with flooding or waterlogging?
  • What capital improvements are planned in the next 3 years?

  • Shortlisted buildings — engage MEP engineer and fire consultant for specialist assessment.
  • Structural adequacy uncertain — commission ASTM E2018 Property Condition Assessment.
  • Lease negotiation — CRE advisor for market terms and landlord obligation negotiation.
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Disclaimer: This article provides educational information and preliminary guidance. It does not constitute professional engineering advice, structural certification, fire-safety approval, legal advice or statutory approval. Building conditions vary by jurisdiction, design, construction and operation. Qualified professionals and relevant authorities should be engaged where required.

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