Environmental due diligence can feel like just another box to check during a commercial real estate transaction until a Phase I uncovers a dry cleaner from the 1960s, a former gas station, or another use no one knew was there.
McAlister GeoScience founder and Principal David McAlister recently joined Shy Assar on Adding Value to talk about what actually happens behind the scenes of environmental due diligence and why it matters to buyers, brokers, lenders, and property owners.
From Phase I to Phase II and Beyond
During the conversation, David breaks down the environmental due diligence process in practical terms, from researching historical property uses and conducting site inspections to determining when a Phase II investigation may be warranted.
As David explains, the goal is to answer the questions that matter to the transaction: Is there an environmental concern? How significant is it? And what does it mean for the property and the deal?
The discussion also explores soil and groundwater contamination, vapor intrusion, lender requirements, environmental liability protections, and the unique risks associated with industrial and flex properties.
Finding a Path Forward
David and Shy discuss how brokers, consultants, buyers, sellers, and lenders can work together when contamination is discovered and how investigation, remediation, and the right deal structure can provide a path forward.
Whether you’re acquiring your first owner-user property or managing a larger CRE portfolio, the episode offers a straightforward look at environmental risk and the role good due diligence plays in protecting your investment.
Watch the full episode of Adding Value to hear the complete conversation with David McAlister.