Managing Environmental Risk is an Important Consideration for Investors Looking to Purchase Industrial Property

inustrial propertyIndustrial properties are more likely to have environmental liabilities and the problems need to be identified and managed. Demand is high for high tech distribution facilities but most times they are being built on top of old manufacturing sites. Industrial property problems are usually the result of past tenant use. Underground storage tanks (USTs) related to vehicle fleet fueling and Hazardous Waste remnants from post manufacturing activity are common problems.  

Protect Yourself With a Site Assessment 

Understanding the historical use of the property with respect to environmental risk is accomplished through a Phase I Environmental Site Assessment, which identifies historical tenant operations and includes a review of regulatory agency records to further assess former operations and identify potential issues.

Underground Storage Tanks ( USTs)

USTs are usually used to fuel fleet vehicles and some are left over from previous owners and some are still in use . A Phase I ESA will document whether historical USTs were removed and whether sufficient soil and/or groundwater sampling was conducted to adequately characterize the potential for a release. Or in the case of existing USTs, whether the age, construction, and/or methods of leak detection are adequate to mitigate the potential risks of bulk petroleum product storage.

Environmental Liens or Activity and Use Limitations (AULs)

Many times industrial properties are sold with an environmental encumbrance which can limit property use or pass on obligations to a new owner. Ex. Residual soil and/or groundwater impacts that remain in place after a prior business has left, so it’s very important for the new property owner to understand the use limitations., especially if they plan on redeveloping the property for a different use. A Phase I ESA report will identify any Environmental Liens or AULs and document any continuing obligations.

Other Concerns

  • Manufacturing operations that used hazardous substances
  • Septic systems
  • Vehicle maintenance and repair operations
  • Improper hazardous waste storage/disposal

An environmental consultant who assesses industrial properties can help property owners manage expectations and have them avoid any last minute issues. Detailed reports will clearly outline the findings and conclusions in a concise and logical manner.

Environmental Risk Management can help you assess a property with a Phase I Environmental Site Assessment.

Contact Us (859-689-9222 – KY, 513-367-4100 – OH) to get more information about how we can help your business.

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