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Building Life Span Investigation

Japanese

When purchasing a preexisting building, subsequent costs following purchase can vary substantially with the setup of the depreciation period. We assess depreciation periods from an engineering perspective.

In addition to use of the statutory building life span, the depreciation period for a preexisting building can be determined through the method of employing individual life-span estimates based on study by specialists including first-class registered architects and engineers.

In general, the actual life span of a building strongly tends to exceed its statutory life span. As such, there are many cases apparent in which a building can be used for longer than its statutory life span.

Properly assessing life span through this survey enables activities such as formulation of long-term management plans and appropriate allocation of cost burdens.

Services

Service Highlights

  • The content of inspections and report documents is designed individually in conformity with clients' accounts and other requirements and through activities including exchange of opinions with clients' CPAs and audit firms.
  • The content of inspections is assessed through research materials from the Architectural Institute of Japan (AIJ), the Building and Equipment Long-life Cycle Association (BELCA), and other organizations, past experience, and engineering surveys of subject properties that include on-site visual inspections.
  • Services can be provided such as calculation of depreciation costs in accordance with each year's revisions to taxation systems.
  • As needed, comprehensive assessment is provided of economic and social life span, not just physical life span.
  • Together with tasks such as preparation of engineering reports when clients are considering purchasing properties, life-span surveys can be provided as well.
  • Since reports can be provided roughly three weeks after a field study, they also can be utilized in cases that require quick decisions, such as real-estate deals.
  • Based on insurance design and the activities of industry organizations and others, as well as joint studies with academic institutions, inspections reflect the latest knowledge available.
  • These services are used for proper accounting and tax processing by numerous business clients including listed REITs, major real-estate firms, and major financial institutions.
  • In light of the highly confidential nature of asset information, risks of data leaks can be avoided through conducting inspection and analysis tasks in locations having assured security levels.

Solution Concepts

  • The content of reports is designed individually in conformity with clients' accounts and other requirements and through activities including exchange of opinions with CPAs and audit firms.
  • Scientific, objective inspections are conducted from a neutral, third-party perspective.
  • The remaining useful life (life span) of building structures and equipment is calculated based on past experience and engineering surveys in addition to the content of studies by the Architectural Institute of Japan (AIJ) and other organizations.

Assessment Flow

  1. Report Content Design

    Designing report contents by exchanging opinions with CPA and audit firms.

  2. Document Review

    Before site survey, reviewing drawings, repair history, statutory inspections, etc.

  3. Site Survey

    Assessing deterioration for building age, maintenance conditions, repairworks, etc.

  4. Analysis

    Analyzing building conditions, and estimating repair costs, building life span and depreciation costs.

  5. Report Writing

    Writing report based on document review, site survey, hearings.

Service Menu

Feel free to contact us for an individualized estimate. Depending on the building age and floor area, etc., the assessment cost per building will be about 500,000 yen. (Package discount with building inspection (Property Condition Report))

Survey items

  • Property outline
  • Assessment of building conditions
  • Assessment of repair and renewal history and plan
  • Assessment of repair and renewal history and plan
  • Effective economic life span
  • Effective social life span

Contact

Please send an e-mail to

contact.ddg@tokio-dr.jp

Please call to

+81-3-5288-7426

(Real Estate Risk Solution)