Condition‐Based Maintenance (CBM) is a common solution for the maintenance of large complex facilities under tight economic conditions. Effective implementation of CBM requires the development of performance indicators for building components and systems. The objectives of the proposed methodology are: (1) to monitor the condition of building components, based on systematic performance scales; (2) to develop a parameter that ensures clear detection of building elements that are in failing condition; and (3) to provide a Key Performance Indicator, based on a unified scale, for the comparison of the performance of different buildings. Two rating scales are used: one for the individual components (Pn) and a second for the entire building – the Building Performance Indicator (BPI). The first scale combines criteria regarding the physical state, performance, fitness for use, and preventive maintenance of various building components. The second scale, the BPI, is a 100‐point scale that covers 10 of the building's main systems. The proposed methodology was implemented in 17 public health care facilities in Israel. The survey results show that the overall state of the facilities is that of deterioration (BPI = 68.9). One building system, the communication and low voltage system, was consistently found to be in poor condition (Pn = 39.4), four systems (exterior envelope, interior finishing, water and waste‐water, and HVAC) were in deteriorating condition (60d ≤ Pn < 70), and five were in satisfactory or higher condition. Validity of the methodology was tested by means of a survey executed by 14 trained surveyors on the same facility. The variance of the results was relatively slight.