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Thanks for stopping by the Three West Blog. Hopefully we can offer you some expertise regarding Northern Michigan commercial real estate, brokerage, leasing, property management, and business issues in and around the Traverse City region. The main purpose for our blog is to educate and help those looking for a resource as it relates to your commercial real estate and business needs. If you have a specific question, shoot us an e-mail at info@threewest.net and we'll do our best to provide an answer. We'll also post many of the frequently asked questions and answers that we come across on a daily basis. We look forward to hearing from you. Check back often. Commercial Real EstateProper Environmental Due Diligence Is Key To The Success Of Any Commercial Real Estate TransactionPosted by Kevin Endres - Jun 17, 2009Addressing environmental issues, through proper due diligence, has emerged as one of the most significant concerns in commercial real estate transactions today. What is “due diligence”? According to Black’s Law Dictionary, due diligence is defined as "Such a measure of prudence, activity, or assiduity, as is proper to be expected from, and ordinarily exercised by, a reasonable and prudent [person] under the particular circumstances; not measured by any absolute standard, but depending upon the relative facts of the special case." The strict liability nature of environmental laws has resulted in a heightened awareness of environmental issues in real estate transactions. The primary reason buyers are conducting such studies is to ascertain if property is contaminated, since under state and federal law (CERCLA), an owner of property is strictly liable for contamination on that property; no causation must be proven to impose cleanup liability. Proper environmental due diligence during commercial real estate and transactions can include Phase I and Phase II Environmental Site Assessments. If a buyer purchases a property that turns out to be contaminated, but that person exercised the proper environmental due diligence prior to the purchase that person would then have a defense to liability. For a couple thousand dollar investment with an Environmental Engineering firm, a purchaser can eliminate the chances of inheriting any environmental liability that could cost them hundreds of thousands of dollars in the future. Be sure your Commercial Realtor is advising you to take the proper precautions in all of your transactions and not just looking to close a quick deal.  PermaLink Comments (0)
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