CRE Video Inspection Uncovers Hidden Issues in a Warehouse Acquisition

A logistics company was in the process of acquiring a large warehouse in an industrial park to expand its distribution network. The warehouse, built in the 1990s, had been partially used for several years, and while it appeared to be in decent shape, the company knew that hidden issues could drastically affect the profitability of the deal. To avoid any costly surprises, they opted for a CRE video inspection before finalizing the purchase.

The Challenge: Spotting Structural and Safety Concerns

The warehouse was massive—over 250,000 square feet—with high ceilings, loading docks, and an extensive HVAC system. The sheer size of the building made traditional inspections cumbersome and time-consuming. The company needed to assess the condition of the building’s roof, flooring, electrical systems, and loading docks. In particular, they were concerned about potential structural issues in areas that were difficult to access, such as the roof trusses, ventilation ducts, and the foundation beneath heavy storage racks.

Safety was also a significant concern. The company wanted to ensure that the building met modern safety codes, especially given that the warehouse would house large machinery, vehicles, and inventory.

The Solution: Targeted CRE Video Inspections of Critical Areas

CRE video inspection technology allowed the logistics company to quickly and efficiently inspect the critical areas of the warehouse, saving them both time and money. Using drones and specialized cameras, the inspection team started with an in-depth review of the warehouse roof. The drone footage revealed areas with significant wear, including spots where water had pooled and caused minor leaks, something that wasn’t visible from the ground. By identifying this early, the company was able to estimate repair costs before moving forward with the deal.

The video inspection also focused on the electrical and HVAC systems, using endoscopic cameras to inspect ventilation ducts and wiring. They found several sections of outdated wiring that posed a fire hazard and areas of rust and corrosion in the ventilation system. Without the video inspection, these issues would have been difficult, if not impossible, to detect until after the purchase.

At the loading docks, the video inspection helped assess the condition of the mechanical systems and floor integrity. The footage revealed cracks in the concrete beneath the docks, likely caused by years of heavy truck traffic. This would require reinforcement to avoid long-term damage.

Results: Informed Negotiation and a Safer Investment

Thanks to the detailed video inspection, the logistics company had a complete picture of the warehouse’s condition. Armed with evidence of necessary repairs—such as roof patching, electrical rewiring, and concrete reinforcement—the company was able to negotiate a lower purchase price, saving hundreds of thousands in upfront costs.

The inspection also gave them a clear timeline and cost estimate for the repairs, allowing the logistics company to plan for upgrades without unexpected delays or budget overruns. They were able to allocate resources effectively and ensure that the building would be up to code and fully functional by the time they began their operations.

Most importantly, the CRE video inspection helped the company avoid costly post-purchase surprises that could have disrupted their business. By proactively identifying issues, they were able to safeguard their investment and ensure the warehouse was a safe, secure, and viable addition to their growing distribution network.

Conclusion: Unlocking the Power of CRE Video Inspections in Industrial Real Estate

In the industrial real estate sector, where buildings are often large and complex, CRE video inspections are invaluable. As demonstrated in this case, the technology allows investors and businesses to gain an in-depth understanding of the condition of their properties, uncovering hidden issues and ensuring that their investments are safe and profitable.

Whether you’re purchasing a warehouse, office building, or retail space, CRE video inspections can save you time, money, and headaches. To learn more about how video inspections can help you make smarter real estate decisions, visit VidTech.com.