Earthquake Transaction Rating
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Improved Understanding of Your Building's Performance in Earthquakes and other Natural Hazards



The USRC Transaction Rating gives your team a reliable transaction due diligence report for making well-informed property investment decisions and managing risk exposure, accommodating both the schedule and cost demands of the leasing, sales, finance and insurance representatives of the real estate industry. Random technical reviews of your Transaction Rating are performed to maintain credibility. Your Transition Rating is limited to three stars in each dimension and registration with the USRC is confidential. It also provides a means to deliver consistent information regardless of the engineer performing the evaluation.


The USRC rating system, using the FEMA P58 methodology, can determine a Probable Maximum Loss (PML) to a client’s desired confidence levels. But a USRC Transaction Rating also provides more information; it includes a building’s level of seismic safety as well as estimating the likely time to regain basic function.


Many in the commercial real estate industry consider the current state of PML reporting to be fractured: lacking consistency, credibility, any professional licensing process or audit mechanism. The USRC approach provides consistency, transparency and credibility.

Features  Current Industry Practice - PML US Resiliency Council 
TRANSACTION RATINGVERIFIED
(ENHANCED PML)RATING
RATINGRATING DESIGNATION0 - 100%One to Three Stars Each Star has a specific threshold (e.g. three star <20%) One To Five Stars Each Star has a specific threshold (e.g. five star <5%)
    
BUILDING PERFORMANCE DIMENSIONSSafetySometimes Excluded
Damage
RecoveryAlmost always Excluded
Special Features Identifies Location of DamageNoAvailable with FEMA P58 Methodology Available with FEMA P58 Methodology
Usable for Advertising & PRNo ControlsNot Allowed 
Quality Control and TransparencyEvaluator Qualifications Voluntary ComplianceState Licensed Engineer+ Min. 5 years experience + USRC Training & CertificationState Licensed Engineer+ Min. 5 years experience + USRC Training & Certification
Latest ASTM Compliance Voluntary Compliance
Certification of Engineer’s QualificationsNone
Engineer's Stamp RequiredVoluntary Compliance
Third Party Technical ReviewNone1 in 7 random - after the factAll - prior to issuance


The USRC transaction rating gives your team a reliable transactional due diligence report for making well-informed property investment decisions and managing risk exposure, accommodating both the schedule and cost demands of the leasing, sales, finance and insurance representatives of the real estate industry. Random technical reviews of your Transaction Rating are performed to maintain credibility.  Your Transition Rating is limited to three stars in each dimension and registration with the USRC is confidential.  It also provides a means to deliver consistent information regardless of the engineer performing the evaluation.

Greg Michaud - Chair of the Commercial Real Estate Finance Council and
                                                     Head of Real Estate Finance, Voya Investment Management

Seismic due diligence is very important to the commercial lending and real estate industries. Many in the commercial real estate industry consider the current state of PML reporting to be broken: lacking consistency, credibility, and professional licensing verification. Just as the accountants created the PCAOB (Public Company Audit Oversight Board) to provide credibility to their members audit reports, I am encouraged that the structural engineering profession is finding ways, such as the USRC, to provide consistency, audit procedures and a revocable certification to those who prepare this critical piece of transactional due diligence”


The USRC Earthquake Transaction Rating is:

  • Used for financial due diligence 
  • The replacement for  existing discredited PML system
  • Performed by certified professionals
  • Subject to random technical audit
  • Transparent – use of national standards
  • Credible – designed to prevent manipulation

View the Process of Obtaining a Transaction Earthquake Rating Here

Our goal is to have the USRC Seismic Rating Program begin in late 2015. If you are interested in engaging a USRC certified rater to obtain a USRC Rating go to the USRC portal (www.usrc-portal.org). If you want to learn more about the benefits of a Building Rating, please fill out the Contact Form below, and someone from the USRC will follow up shortly. 

 

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Rating Earthquake Performance In Today’s Buildings