Commercial real estate transactions often involve environmental obligations that may affect financing, redevelopment, regulatory compliance, and long-term property ownership. Early planning allows parties to identify risks and make informed business decisions.

What environmental risks should be evaluated?

Common issues include historical contamination, underground storage tanks, hazardous materials, environmental permits, remediation projects, regulatory compliance history, land use restrictions, and NJDEP enforcement matters.

How can parties reduce environmental risk?

Begin environmental due diligence early, review historical site records, obtain appropriate environmental assessments, coordinate technical consultants with legal counsel, and address identified issues before finalizing transaction documents.

Why is due diligence important?

Environmental due diligence helps identify potential liabilities, supports negotiations, satisfies lender requirements, assists with risk allocation, and reduces the likelihood of unexpected post-closing environmental obligations.

Common misconceptions

A property that appears well maintained may still have historical environmental issues. Thorough due diligence is important regardless of the property’s current appearance or use.

Key Takeaways

  • Start environmental due diligence early.
  • Review environmental reports and regulatory records.
  • Coordinate legal and technical professionals.
  • Evaluate environmental liabilities before closing.
  • Address significant issues before completing the transaction.

When should you contact an attorney?

Consult an environmental attorney before purchasing, selling, financing, or redeveloping commercial property whenever environmental issues, regulatory obligations, or potential liabilities could affect the transaction.

Contact The Law Office of Alan S. Ashkinaze

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