Commercial Industrial Real Estate Environmental Issues

Environmental issues are a key area which has to be properly managed in all commercial and industrial real estate transactions. Although environmental issues are usually first identified during a Phase I Environmental Site Assessment, plans for future use of the property can also heavily influence how a transaction proceeds. Recent initiatives at state and federal environmental agency level are helping to facilitate reuse of land and facilities consider to have major environmental liabilities, and to be virtually not sellable, even a few short years ago. To go forward with a commercial or industrial property transaction, it is necessary to carefully plan the transaction. The best approach for most property owners is to resolve environmental issues or define exactly what has to be done, before placing the property up for sale, if there are significant environmental issues to deal with.

Here is a summary of the key environmental issues which affect commercial and industrial property transactions:

Tanks - Underground Storage Tanks and Aboveground Storage Tanks are environmental issues of concern because the tanks may have leaked, piping releases may have occurred, or, spills may have occurred while the tanks or vehicles using the tanks are filled. Where tanks are more than 20 years old, most people elect to remove the tanks, and replace them with aboveground storage tanks. The most common method of investigating an underground storage tank is to install GEOPROBE holes, to see if there are any impacts to soil and or groundwater near the tank. For more information on Tanks, click here.

Asbestos Containing Materials - Asbestos Containing Materials were used as insulation into the late 1970's. Asbestos Containing Materials can include sprayed on wall or ceiling installation, pipe insulation, or floor tile. The first two forms of the material are friable, and have to be removed by specialty trained and licensed crews. Floor tile typically can remain in place, but still has to be specially managed when the building is planned to be extensively renovated and/or demolished. Licensed inspectors complete asbestos containing material surveys of buildings, and, asbestos containing material Operations and Maintenance Plans are required under OSHA regulations wherever asbestos containing materials are present on a property. For more information on Asbestos Containing Materials, click here.

Lead Based Paint - lead based paint has become an increasing environmental concern over the last several years, although the primary concerns are on residential properties. Many new tenants and purchasers, however, of commercial facilities, expect the lead based paint to have been fully abated, or for the premises to be "lead safe". Licensed inspectors complete lead based paint surveys, after which further decisions can be made on how to proceed with resolving lead based paint issues at a given facility. For more information on Lead Based Paint, click here.

Other Environmental Issues - other environmental issues which typically come up at sites, include the need for hazardous materials surveys prior to renovation or demolition, dealing with situations where there is historical fill or waste disposal on the property, closure of chemical or waste storage areas in buildings, and/or closure of wastewater treatment plants.

More information on many of the above topics is available from RT Environmental Services, headquartered in King of Prussia, PA.