# Industrial Physical Inspection Research

## Purpose

- Supports `skills/industrial/industrial-physical-inspection.md`
- Intended for acquisitions teams translating industrial building specs and observed condition into CapEx, release risk, and operational fit

## U.S.-Only Assumptions

- Focus is U.S. industrial and logistics buildings
- Inspection outputs are for acquisitions screening and budgeting, not code certification
- The skill should surface physical issues that affect leasing competitiveness, safety, insurability, and capital planning

## Source Table

| Source | Publisher | URL | Publish Date | Access Date | Source Type | Notes |
|--------|-----------|-----|--------------|-------------|-------------|-------|
| Applied Automation in the Warehouse Boosts Value Across Stakeholders | Prologis Research | https://www.prologis.com/insights-news/research/applied-automation-warehouse-boosts-value-across-stakeholders | 2026-04 | 2026-04-22 | Quasi-primary market participant research | Automation-ready specs and power needs |
| Commercial Real Estate Terms and Definitions | NAIOP | https://www.naiop.org/education-and-career/industry-terms-and-definitions/ | n.d. | 2026-04-22 | Institutional glossary | Definitions for dock-high doors, clear height, and logistics terms |
| The Industrial Spec Sweet Spot - What Tenants Want | Cushman & Wakefield | https://www.cushmanwakefield.com/en/united-states/insights/the-industrial-spec-sweet-spot-what-tenants-want | 2021-05-07 | 2026-04-22 | Institutional research | Occupier preferences for specs such as clear height and trailer parking |
| New & Noteworthy | NAIOP | https://www.naiop.org/research-and-publications/magazine/2023/Spring-2023/development-ownership/new-and-noteworthy/ | 2023-03 | 2026-04-22 | Institutional project examples | Modern industrial project specs by market |
| Commercial Real Estate Magazine Spring 2025 | NAIOP | https://www.naiop.org/globalassets/magazine/2025/spring-2025/2025_spring.pdf | 2025-03 | 2026-04-22 | Institutional project examples | New Class A industrial design specs |
| Changes in the 2025 Edition of NFPA 13 | National Fire Sprinkler Association | https://nfsa.org/2024/07/23/changes-in-the-2025-edition-of-nfpa-13-technotes/ | 2024-07-23 | 2026-04-22 | Quasi-primary standards commentary | ESFR and storage-related fire protection changes |
| New Tyco ESFR-25 Dry-Type Sprinkler | Johnson Controls | https://www.johnsoncontrols.com/media-center/news/Press-Releases/2024/10/01/New-Tyco-ESFR-25-Dry-Type-Sprinkler | 2024-10-01 | 2026-04-22 | Quasi-primary manufacturer source | Cold storage and advanced fire protection context |
| U.S. Industrial MarketBeat | Cushman & Wakefield | https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/us-industrial-marketbeat | 2026-04 | 2026-04-22 | Institutional research | Demand shifting toward newer, higher-power buildings |
| CBRE Property Marketing Example | CBRE | https://www.cbre.com/resources/fileassets/US-SMPL-170284/9e819b20/f1281cb3-40b4-44a9-966c-90c829575cf7.pdf | 2025-04 | 2026-04-22 | Quasi-primary market example | Real-world industrial specification sheet |
| Prologis Build-to-Suit Team Pivots Spec Development to Enable Robotics | Prologis | https://www.prologis.com/insights-news/success-stories/prologis-build-suit-team-pivots-spec-development-enable-robotics | 2022-05 | 2026-04-22 | Quasi-primary market participant source | 40-foot clear, dock count, trailer parking, robotics-ready design |

## Key Findings

- Industrial physical inspection has to assess both **condition** and **functional competitiveness**.
- The highest-signal inspection topics are:
  - roof age and warranty status
  - slab condition and load suitability
  - clear height
  - loading configuration and dock equipment
  - truck court depth
  - trailer parking
  - sprinkler system type
  - power capacity and distribution
  - office finish ratio
  - HVAC coverage and make-up air needs
- Modern occupiers increasingly prefer buildings that can support automation, higher power intensity, and larger-format truck circulation.
- Fire protection matters both for insurability and release risk. ESFR capability, storage configuration compatibility, and cold-storage fire protection needs should be surfaced early.
- A physically sound older building can still underperform if it lacks the core specs required by modern users.

## Benchmark and Formula Decisions

- The skill should classify each asset by industrial subtype before inspection conclusions are drawn.
- Use a functional fit framework that scores:
  - loading
  - height
  - circulation
  - trailer storage
  - fire protection
  - power
  - office-finish burden
  - deferred maintenance
- Avoid single national numeric cutoffs for all specs. Instead:
  - compare the subject to current competing product in its subtype and market
  - flag clear functional obsolescence where the building is materially below current tenant requirements
- Require an explicit distinction between:
  - immediate repairs
  - near-term capital replacements
  - leasing competitiveness upgrades

## Conflicting Source Resolution

- Project examples show a range of modern industrial specs because different markets and tenant types support different standards. The skill should use subtype-relative positioning, not a single national "ideal" number.
- Older institutional sources like Cushman’s spec survey still help identify occupier preferences, but newer market reports should govern how heavily those preferences are weighted today.
- Standards commentary and manufacturer materials should inform inspection questions, not be mistaken for a substitute for engineered review or AHJ confirmation.

## Edge Cases and Red Flags

- Older infill buildings may remain competitive despite lower clear heights if location advantages are exceptional
- Flex buildings with heavy office build-out need separate treatment from warehouse-only buildings
- Cold storage and food-grade assets require a distinct inspection overlay beyond conventional dry warehouse standards
- Power upgrades and sprinkler retrofits can be structurally possible but economically infeasible

## Open Questions

- Whether a dedicated cold-storage physical-inspection addendum is needed later
- Whether future versions should include a light manufacturing mechanical-systems overlay
- Whether parking and circulation standards should be expanded by market type in a later research wave
