In the highly competitive world of commercial real estate, redevelopment projects can be a goldmine—if executed properly. When a development company considered acquiring a large suburban mall for a mixed-use redevelopment project, they knew that a thorough inspection would be crucial. The property, built in the late 1970s, had seen years of neglect, with many vacant stores and outdated facilities. To assess the feasibility of the project, the company turned to CRE video inspection technology, allowing them to uncover crucial details that would impact their investment.
The Challenge: Evaluating Aging Infrastructure and Hidden Costs
Redeveloping the mall into a modern, mixed-use space meant understanding not just the building’s current condition but also its potential for retrofitting and adaptation. The company’s initial concerns revolved around the mall’s infrastructure, especially the HVAC system, electrical grid, and overall structural stability. Given the mall’s age, they anticipated costly repairs, but traditional inspection methods wouldn’t provide a clear picture of the hidden areas, such as behind walls, inside ductwork, or underneath the foundation.
The Solution: Comprehensive CRE Video Inspection
To get an accurate evaluation of the mall’s infrastructure without slowing down the project timeline, the development firm chose CRE video inspection. This approach allowed the company to evaluate critical systems without disrupting the current tenants who still operated in the space.
Using drone footage, they began with an aerial inspection of the mall’s exterior. This revealed potential issues with the roof, including areas that showed signs of significant wear and tear, along with clogged drainage systems. The internal inspection focused on the mechanical systems, using endoscopic cameras to assess the HVAC ductwork and plumbing. In doing so, they discovered leaks, clogs, and corrosion in pipes that would require replacement.
The electrical system inspection was particularly insightful. Using video inspection tools, they identified faulty wiring in the older sections of the mall and panels that would not meet modern electrical codes. This allowed the firm to estimate the cost of necessary upgrades before making a purchase offer.
Results: Informed Decision-Making and Reduced Risk
The video inspection provided the development company with a clear understanding of the mall’s existing problems, enabling them to make a well-informed decision. Armed with this data, they were able to approach the sellers with a detailed breakdown of the repairs and upgrades needed, using this information to negotiate a more favorable purchase price.
Moreover, having video evidence helped the firm plan out their redevelopment timeline. They knew exactly which areas required immediate attention, such as the roof and plumbing systems, and which could be upgraded later in phases. This not only helped them budget more accurately but also allowed them to avoid unexpected delays during the redevelopment process.
By using CRE video inspection, the development firm was able to mitigate the risk of unforeseen structural and mechanical problems. This early investment in thorough inspections ultimately saved the company significant time and resources, allowing them to stay on schedule for the redevelopment and reduce costly surprises down the road.
Conclusion: CRE Video Inspection as a Redevelopment Tool
As this case demonstrates, CRE video inspection is an invaluable tool when evaluating older properties for redevelopment. It offers unparalleled access to hard-to-reach areas and provides detailed, actionable data that helps investors avoid hidden costs and better understand the scope of their projects.
Whether it’s a historic office building, a mall slated for redevelopment, or any other commercial property, CRE video inspection offers the ability to make smarter, more informed decisions. To learn more about how video inspections can enhance your next redevelopment project, visit VidTech.com.
