Construction Solutions

Facility Conditions Assessments Aid in Strategic Real Estate Decisions

By: Kelly DeVito

Feb 5, 2025

Services: Facility Condition Assessment & Report  
Dept: Construction Solutions 
Market: Warehouse/Industrial

GOALS 

With five days to make a lease/purchase decision on a potential new space, our client, a major player in distribution, needed to understand the condition of the facility and any operational issues that could materially affect their ability to do business in the building. This rapid assessment was crucial for making an informed decision that aligned with their strategic objectives.

SERVICES/SCOPE 

STRUCTR thoroughly reviewed the condition of a 950,000-GSF active clothing distribution warehouse and provided a full written assessment. The assessment covered various critical aspects of the facility, including:  

  • Site conditions: Evaluation of the external environment and infrastructure. 
  • Architectural systems: Analysis of the building’s structural integrity and design. 
  • Mechanical systems: Inspection of HVAC, plumbing, and other mechanical components. 
  • Electrical systems: Review of the electrical infrastructure and safety measures. 
  • Specialty systems: Examination of any unique systems specific to the warehouse’s operations. 
  • Key activities included: 
    • Identification of existing negative conditions across all systems. 
    • Provision of a detailed, line-item range of repair costs for the identified issues. 

Due to the tight timeline, STRUCTR personnel conducted an exhaustive site review over two 12-hour days.  This included photographing and documenting all areas of concern. Following the site review, the team defined and priced suggested repairs, generating a written report in two additional days. 

APPROACH AND CHALLENGES
Given the urgency of the situation, STRUCTR’s team employed a highly efficient and systematic approach. Leveraging advanced tools and methodologies, such as digital documentation and real-time data analysis, the team ensured that no detail was overlooked. The primary challenge was to deliver a thorough and accurate assessment within an exceptionally short timeframe, which STRUCTR successfully managed through meticulous planning and execution. 

IMPACT 

The facility assessment, produced by STRUCTR, was instrumental in the client’s negotiations with the seller. The documented issues, along with the estimated $1 million in repair costs, enabled the buyer to request a $950,000 reduction in the facility’s sale price. This significant cost adjustment made the transaction more favorable and ensured that the client could allocate necessary funds for immediate repairs and updates.   

As a result of STRUCTR’s detailed assessment and strategic advice, the client confidently entered a lease/purchase agreement with the seller, knowing they had a clear understanding of the facility’s condition and the financial implications of the required improvements. This decision was pivotal in aligning the client’s real estate acquisition with their broader business goals, ensuring operational readiness and financial prudence. 

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