The National Association of Homebuilders recently reported that residential construction increased in 2013. Overall, there was an 18.3% increase in residential construction spending over 2012. Specifically, construction of single-family homes was up 20%, and remodeling was up 14%. Multi-family saw the greatest increase, at nearly 35%. Increased construction shows the economy is looking up! Let’s hope it stays that way.
In November of 2013, the American Society for Testing and Materials (ASTM) approved a new standard for Phase 1 environmental studies. Here are some of the new requirements 1. The environmental consultant must look into the possibility of hazardous vapors migrating onto the property. 2. If neighboring properties are in public regulatory databases, the environmental consultant must conduct a review of those regulatory files. 3. The environmental consultant must identify recognized environmental conditions even if they have been resolved. When negotiating a contract where environmental studies will be required, keep in mind that the additional requirements may take additional time, so plan your due diligence accordingly.
When buying commercial property, especially if it’s vacant land and oftentimes even when it’s not, you have to know the condition of the real estate, and that involves an environmental study. The first step is to get the Phase 1. The Phase 1 is an environmental study designed to identify harmful environmental conditions that are affecting or may affect the property. It is essentially the first step in your environmental due diligence, and it can often determine whether or not you even proceed. The person conducting the Phase 1 will typically make a site visit, look into public records, check out the area where the Property is located, and review maps and images of the Property. Based on that, he will determine if the subject Property might have any environmental issues. For example, it might be a problem if there is a gas station next door. Or, from public records, he might figure out… read more →