CASE STUDY: DHL INTERNATIONAL LOGISTICS

Introduction and Client Background

INform began discussions with DHL, an international logistics company, to provide advice on how best to record in a high level of detail the condition of two large industrial warehouses in which they had taken over logistics operations. The two properties where 365,000 and 285,000 sqft in size, so the size of them required a careful understand of how to accurately survey and record.

The client was rightly concerned with the onerous lease clauses which required them to fully keep the property in repair, and is only limited by the Schedule of Condition. As such, the client wished to ensure they were well protected at the end of the lease. With this in mind, the client requested that all areas be fully documented with photographs and video evidence, which is not a common practice.

Begin by introducing the client and the context in which the Schedule of Condition was needed. Were they a tenant entering a new lease, a landlord protecting their property, or a construction company starting a project? Explain their goals and concerns regarding the property’s condition and the need for a Schedule of Condition.

Objectives of the Schedule of Condition

Given the operational status of the industrial units, the client recognised the risks of documenting the condition at the agreed point in time. The primary objective was to create a detailed, accessible record of the property, allowing for easy reference when responding to claims, particularly at lease end. The video evidence would serve as a crucial tool for reviewing and addressing potential disputes as they arose.

Our goal was not only to provide a highly detailed photographic Schedule of Condition but also to present the documents and electronic files in a structured, user-friendly format. This was essential given the scale of the properties, which featured repetitive construction elements and damage patterns. To ensure effective access to thousands of photos, we implemented multiple recording methods, including traditional photographic reports and video documentation.

Survey Methodology and Approach

The first step was to integrate existing drawings and floor plans to understand the property layout and determine the best recording strategy. Large industrial properties with extensive warehousing and ancillary areas require a tailored approach to surveying, documenting, and reporting. We assessed occupancy, access restrictions, health & safety considerations, and GDPR/privacy concerns related to video recordings.

With minimal on-site personnel and full client access, we collaborated with the maintenance team to walk through the buildings, opening up areas and clarifying access matters. This initial walkthrough allowed us to refine the drawings and establish an efficient surveying approach, ensuring consistency in photo documentation and defect recording.

For video evidence, we utilised two methods:
• 360-degree 4K video recording for full-area capture.
• Oculo, a geo-locating application that mapped photographs and defects for easy reference.

These tools significantly enhanced the usability of the Schedule of Condition, particularly in a large warehouse with repetitive features where spatial referencing is critical. The original 360-degree footage was stored in its native format to future-proof the survey data.

Survey work was divided into key components: external areas, perimeter fencing, building elevations, internal warehousing, office space, and ancillary areas. Our certified drone pilot conducted detailed roof and elevation scans to ensure full coverage.

The final deliverables included fully catalogued digital files, high-resolution photographs, and video documentation, broken down into structured sections for ease of navigation. PDF versions were provided in full and in segmented formats, allowing the client flexibility in file sharing and review.

This instruction reinforced the importance of continuously evaluating the survey process to align with both the client’s immediate needs and future requirements. Beyond simply documenting the property’s condition, we focused on how the data would be used over time, ensuring it remained relevant for lease negotiations, maintenance planning, and potential disputes.

Leveraging the latest technology was crucial to enhancing the survey’s accuracy, accessibility, and long-term value. Rather than producing a standard photographic schedule, we integrated advanced methods such as 360-degree video, geo-located imagery, and high-resolution drone surveys. These tools provided an in-depth record, reducing ambiguity and supporting informed decision-making.

Our approach was guided by ‘First Principles Thinking’, critically analysing the traditional survey process and improving it through innovation. By applying our extensive knowledge of the Landlord and Tenant process, we developed a comprehensive, future-proofed set of documentation that could be referenced throughout the lease term, ensuring clarity and reducing potential disputes.

The final deliverables comprised nearly 12,000 fully referenceable and catalogued photographs alongside 300GB of survey data in multiple formats. Managing such a vast dataset posed storage and IT-related challenges, but we implemented solutions to ensure seamless access while maintaining high levels of accuracy and detail.

To overcome potential IT security and storage limitations, we opted to deliver the data via solid-state storage drives (SSD). This method provided a secure and efficient transfer process, bypassing cloud-based restrictions and ensuring both the client and landlord had dedicated copies with built-in backup options for long-term accessibility.

The client was highly satisfied with both the surveying process and final documentation. During the handover, we conducted a comprehensive presentation for the internal property team, demonstrating the various technologies used and the practical benefits of our approach. Following this, the client recognised the added value of this methodology and agreed that it should be adopted as a best practice for future landlord and tenant matters, as well as broader property and construction projects.

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This project highlighted the importance of critical thinking in delivering a comprehensive and future-proof Schedule of Condition. Rather than providing a standard, generic document, we proactively considered how the records would be used and referenced in the future, ensuring that the documentation was clear, accessible, and highly detailed.

By anticipating potential disputes and structuring the records for ease of review, we maximised the client’s protection in the dilapidations process. This strategic approach will help minimise future claims, streamline negotiations, and provide a solid evidential foundation for any lease-end discussions.