The industrial asset class has been one of the most resilient and dynamic sectors in commercial real estate (CRE), driven by the continued rise of e-commerce, supply chain optimization, and manufacturing advancements. For CRE brokers working in this space, it’s essential to stay ahead of trends and utilize tools that enhance property marketing and streamline transactions. One such tool is video technology—specifically video offering memorandums (OMs), drone footage, and 3D modeling. These innovations not only help brokers market industrial assets more effectively but also improve due diligence and decision-making processes.
Why Industrial Real Estate is Booming
Industrial properties, including warehouses, distribution centers, and manufacturing facilities, are in high demand across the U.S. E-commerce alone is projected to generate a need for an additional 1.5 billion square feet of industrial space by 2025. This growth is creating fierce competition among investors, and brokers must adapt their strategies to secure deals.
As industrial properties become more valuable, brokers need ways to stand out in a crowded market. Video technology offers the perfect solution. Properties with video content generate 49% more interest from potential buyers and tenants, and CRE brokers who incorporate advanced video tools can close deals faster and more efficiently.
The Role of Video Offering Memorandums in Industrial Asset Marketing
Video offering memorandums (OMs) are becoming a staple in marketing industrial assets. While traditional OMs rely heavily on text descriptions, financial data, and static images, video OMs bring properties to life. For industrial brokers, this means showcasing expansive spaces, high-clearance ceilings, dock doors, and outdoor storage areas in a dynamic way.
Drone footage plays a critical role in industrial property marketing, offering a comprehensive view of large-scale properties. Investors can see not only the interior and exterior of a facility but also the surrounding infrastructure—such as nearby highways, rail connections, or proximity to ports. This is especially important in the industrial sector, where location is a key factor in determining a property’s value and utility.
Data suggests that industrial properties with video OMs and drone footage sell 24% faster than those marketed with traditional methods alone. This is largely because video enables buyers to make quicker, more informed decisions without needing to physically visit the site multiple times.
Drone Technology: Maximizing Property Visibility
Industrial assets, due to their size and complexity, benefit greatly from aerial views that provide a full understanding of the property’s layout and surrounding areas. Drone footage allows brokers to capture all angles of a property, offering potential investors an in-depth look at truck yards, parking areas, and the overall flow of goods in and out of the facility.
For example, a video OM for a 500,000 square foot warehouse might include drone footage showing the number of truck bays, outdoor storage areas, and neighboring properties—giving prospective buyers a comprehensive view of the property’s logistics capabilities. By providing this level of visibility, drone footage can reduce the need for site visits, which is especially beneficial for out-of-state or international buyers.
Data-Infused Video Presentations: Enhancing Investor Confidence
Investors in the industrial asset class are highly data-driven, making it essential for brokers to incorporate critical financial metrics into their marketing materials. Data-infused videos, which combine visuals with key information such as current and projected lease rates, operating costs, and tenant data, allow investors to evaluate opportunities more effectively.
By integrating market trends and economic forecasts into video presentations, brokers can provide investors with a clearer picture of the property’s long-term potential. This not only speeds up the decision-making process but also instills greater confidence in buyers. According to a 2022 survey, 73% of industrial investors stated that having access to video content with embedded financial data influenced their decision to move forward with a transaction.
3D Modeling: Bringing Industrial Spaces to Life
3D modeling is another game-changing technology for the industrial sector, particularly for properties that are under construction or undergoing renovations. Brokers can use 3D models to create immersive, virtual walkthroughs of industrial facilities, allowing potential buyers or tenants to explore the space from anywhere in the world.
For industrial assets, 3D models can show various configurations, such as how machinery or racking systems could be arranged, or how different tenant improvements might alter the layout. This is especially useful for build-to-suit developments or spec buildings where investors want to understand the flexibility of the space.
A study by the National Association of Industrial and Office Properties (NAIOP) found that 3D models increase investor engagement by 38%, as they help potential buyers visualize how the space will meet their needs, reducing the likelihood of costly misunderstandings or last-minute changes during negotiations.
Streamlining Due Diligence with Video Inspections
One of the most time-consuming aspects of buying or leasing industrial properties is conducting due diligence. Typically, this requires multiple site visits, inspections, and assessments of various facility features, such as HVAC systems, sprinkler setups, and loading docks. With video inspections, brokers can significantly streamline this process.
By offering detailed video inspections of key property features, brokers can reduce the number of physical visits required, saving time and money for all parties involved. These video inspections can be revisited at any point, ensuring that investors have access to accurate, up-to-date information throughout the transaction process.
Recent data shows that industrial brokers who incorporate video inspections into their due diligence process see a 15% reduction in the time it takes to close a deal. This efficiency allows brokers to handle more transactions and provide a higher level of service to their clients.
Meeting the Needs of a Growing Sector
With the industrial sector showing no signs of slowing down, CRE brokers need to adopt modern technologies to meet the demands of their clients. Video OMs, drone footage, 3D modeling, and video inspections are powerful tools that allow brokers to showcase properties more effectively, reduce transaction timelines, and provide investors with the confidence they need to make informed decisions.
Conclusion
The industrial asset class is undergoing rapid growth, and brokers who embrace video technology will be better positioned to capitalize on this trend. By utilizing data-driven video presentations, drone footage, and 3D modeling, brokers can offer a more comprehensive view of industrial properties, enhancing investor confidence and driving faster transactions.
For brokers looking to stay competitive in the industrial real estate market, video technology is no longer a luxury—it’s a necessity. VidTech’s services, which offer cutting-edge video OMs, inspections, and 3D modeling, empower brokers to market industrial assets more effectively and efficiently, helping them close more deals in less time.
