Many individuals are concerned about the location when buying a property. This is because the site will affect the investment in the long term. Yet one of the most neglected property aspects is environmental risks.
Determining the property’s environmental factors is essential in maintaining a balanced and comprehensive risk management strategy. It aids the entity in its environmental risk prevention, consequently alleviating further costs in the future. Before purchasing a property, commercial property owners, potential clients, and lenders should conduct an environmental site assessment.
Environmental Site Assessments (ESAs) identify ecological contamination issues and are typically sought as part of a property transaction’s due diligence. A property is classified as contaminated if it contains sufficient pollutants that could be hazardous to individuals or the environment. These contaminants include petroleum carbon (PHC), oxygen-depleting organics, and toxic organics like pesticides and other dangerous substances.
These toxic substances can seep into the soil, cause fire, and produce unpleasant odors that harm human health and the environment. A property should undergo a property condition assessment NJ to identify these threats and provide a Phase 1 Environmental Assessment report to authorities.
Phase I Environmental Site Assessment is integral to a commercial real estate transaction. Its goal is to examine a property’s current and past operation to identify the underlying property’s environmental condition. The assessment can be performed on properties such as:
- vacant areas;
- industrial sites;
- commercial buildings; and
- agricultural lands
A comprehensive assessment will involve a review of the property records, interviews with property and neighborhood officials, and site inspections by an experienced commercial building inspector NJ. The assessment will also include a review of regulatory agency files. Additionally, the Phase I ESA should adhere to ASTM 1527. If there is a recognized environmental condition, Phase II ESA should be undertaken.
To know more about the Phase 1 Environmental Site Assessment, here is an infographic from Lockatong Engineer, a NJ company that provides comprehensive building engineering and assessment services.
