Overview: Why Industrial Facilities Require Strategic Inspection

Warehouses and logistics hubs can offer exceptional value—but only when hidden structural, mechanical, or site deficiencies are properly addressed. Industrial buyers face unique risks involving roofs, slabs, HVAC systems, and parking lots, any of which can derail a deal or reduce long-term profitability.

In this real-world case, we inspected a 61,600 sq. ft. warehouse in Southern California, built in 2002. Despite its modern construction and distribution appeal, our commercial property inspection and detailed cost to cure report uncovered nearly $1,000,000 in critical repairs. With those insights, the buyer protected their investment, negotiated with confidence, and moved forward with clear data.

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The Challenge: A High-Value Industrial Asset with Hidden Risks

The client was preparing to acquire a large, modern warehouse property ideal for logistics but needed to ensure operational readiness and long-term structural stability. We were brought in to inspect the building and provide a cost to cure estimate through Repair Pricer, delivered in 2025.

Despite the property’s solid exterior appeal, several high-cost issues were uncovered that could have jeopardized inventory storage, tenant retention, and financing.

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Our Solution: Commercial Inspection + $1M Cost to Cure Report

We conducted a full PCA in accordance with ComSOP standards for commercial inspections. Our report outlined critical deficiencies across major systems and structural components, broken down as follows:

Key Findings:

• Roofing Deficiencies — $482,825
  We identified severe wear on the flat roof, including wrinkled parapet wall flashings. These defects risk water intrusion, endangering equipment, inventory, and operational continuity. Extensive flashing replacement and membrane restoration were recommended by a licensed commercial roofing contractor.
• Parking Lot Failures — $404,608
  The lot showed alligatoring, potholes, and drainage problems. These compromised ADA compliance, safety for heavy vehicle traffic, and tenant appeal. Full resurfacing or reconstruction was required.
• HVAC System Repairs — $50,467
  Rooftop units (RTUs) were in poor condition. Repairs or replacements were necessary to maintain temperature control and air quality, especially for climate-sensitive operations.
• Structural Concerns (Sloping Floors) — Estimated $62,100
  Our inspection noted areas of sloping or uneven warehouse flooring. This is a critical issue for forklifts, heavy racking systems, and any facility using automation. Evaluation by a structural engineer or flooring contractor was recommended.

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The Outcome: Deal-Saving Insights for the Investor

Thanks to our findings:

• Informed Budgeting: The investor planned for nearly $1M in repairs, addressing roofing, HVAC, structural, and parking deficiencies.
• Negotiation Advantage: The buyer used the report to negotiate favorable deal terms during the due diligence period.
• Operational Risk Avoidance: Repairs were prioritized for roofing, HVAC, and slab leveling to ensure tenant readiness and operational efficiency.
• Improved Asset Value: By addressing these issues upfront, the buyer secured a better long-term return and improved future leasing potential.

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Why Brokers and Investors Trust Our Warehouse Inspections

Since 2004, The Real Estate Inspection Company has been a trusted inspection partner for industrial and logistics assets throughout Southern California.

What We Deliver:

• ✅ Expert inspections for warehouses, manufacturing, and logistics centers
• ⏱️ Fast report delivery (often within 48–72 hours)
• 📊 Cost to cure reports with real-world repair estimates
• 📍 Experience in San Diego, Riverside, and Orange County markets

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📞 Schedule Your Warehouse Inspection Today

Are you helping a client close on an industrial asset?
Avoid costly surprises with a thorough inspection and cost analysis.

📞 Call 800-232-5180
🌐 Visit www.sdinspect.com to book your inspection.