Dealing with Environmental Issues in Your CRE Development Project

 Posted on December 00, 0000 in Commercial Real Estate

Environmental issues can arise in any real estate transaction, but their potential consequences are often most severe in commercial real estate (CRE) settings. Part of the reason for this is simple: CRE projects involve more time, money, and resources. However, there are some additional obstacles that CRE investors may face when dealing with environmental issues. Learn how to mitigate against such issues in the following sections, and discover how an experienced real estate attorney can help protect your interests in your next CRE development project.

Common Environmental Concerns in CRE Development

Environmental concerns in CRE development projects can include soil and water contaminants, building contaminants, and noxious gas or vapor contaminants. Mold, lead, asbestos, and radon are some of the most commonly seen contaminants in real estate. Contamination may originate either onsite (from the activities of builders and previous owners) or off-site (contaminants that have leeched or been brought onto the work site).

Due Diligence and Environmental Issues

By performing due diligence, CRE project developers can ensure that environmental concerns are detected and addressed before a developer become legally liable for the property. However, one must keep in mind that environmental assessments in CRE projects do not address all environmental concerns. Instead, these assessments focus primarily on the release of toxic contaminants into the environment. Developers can obtain more protection against litigation and potential financial loss in a CRE project by knowing what to look for and where to ask for help.

Failure to Diagnose Environmental Problems

While it is preferable if a CRE developer or investor learns of contaminants prior to the completion of a transaction, all may not be lost if the deal has gone through and contaminants have been found. Individuals can create a detailed plan of action with help from environmental experts, land surveyors, and their attorney. The benefit to this is a more organized removal of contaminants, which can decrease the risk of litigation, personal injury, and costly project delays.

Contact Our Naperville Real Estate Development Lawyers

Whether you are looking at a possible commercial real estate development project and need assistance with due diligence, or have discovered contaminants on your recently purchased process, Lindell & Tessitore, P.C. can help. No matter what the situation, our seasoned Naperville real estate development lawyers strive for the outcome that protects your financial interests. Get the assistance and experience that you deserve. Schedule a personalized consultation by calling 630-778-3818 today.

Source:

https://www.researchgate.net/publication/280976419_Effects_of_Asbestos_on_Commercial_Real_Estate_A_Survey_of_MAI_Appraisers

https://www.epa.gov/lead/real-estate-disclosure#propertyml

http://www.ct.gov/dph/lib/dph/environmental_health/eoha/pdf/moldguidance_insurance.pdf