Industrial properties often have operational histories that warrant careful environmental review. Conducting due diligence early in the acquisition process helps buyers make informed decisions, negotiate appropriate protections, and avoid unexpected post-closing issues.

What should environmental due diligence include?

A comprehensive review may include Phase I Environmental Site Assessments, Phase II investigations when appropriate, historical property research, NJDEP file reviews, permit evaluations, compliance history, underground storage tank records, remediation status, and operational assessments.

Why is early due diligence important?

Early investigations provide time to identify environmental concerns, evaluate business risks, satisfy lender requirements, negotiate contractual protections, and determine whether additional technical work is necessary before closing.

How can buyers reduce environmental risk?

Coordinate environmental consultants, legal counsel, engineers, and other professionals early in the transaction. Review all available environmental records, assess regulatory obligations, and address identified issues before completing the purchase.

Common misconceptions

A clean-looking property is not necessarily free of environmental concerns. Historical industrial activities, prior ownership, or undocumented releases may create liabilities that require further investigation.

Key Takeaways

  • Start environmental due diligence early.
  • Review historical and regulatory records.
  • Evaluate permits, remediation, and compliance history.
  • Coordinate legal and technical professionals.
  • Resolve significant environmental issues before closing whenever possible.

When should you contact an attorney?

Consult an environmental attorney before purchasing industrial property, negotiating acquisition documents, evaluating environmental reports, allocating environmental risk, or addressing regulatory and remediation issues.

Contact The Law Office of Alan S. Ashkinaze

The Law Office of Alan S. Ashkinaze advises buyers, sellers, developers, investors, lenders, and industrial property owners throughout New Jersey on environmental due diligence, regulatory compliance, remediation, and commercial real estate transactions.