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Case Study: How Indoor Air Assessments Help Reduce Uncertainty in CRE Transactions

By June 3, 2026 No Comments

Indoor Air Assessment Supports Transaction Confidence at Anaheim Industrial Property

Background

McAlister GeoScience was retained to conduct a Phase II Environmental Site Assessment (ESA) involving indoor air sampling at an industrial property in Anaheim, California. The property is currently utilized for warehousing and distribution operations related to aluminum doors, window frames, and associated materials.

Prior environmental due diligence identified a potential concern tied to a neighboring property immediately south of the site. Historical records showed the adjacent property operated as an electronics manufacturing facility for several decades and has been the subject of ongoing environmental oversight due to historic solvent releases. Recent investigations in the surrounding area indicated that impacts from these historical operations could potentially extend toward nearby properties, creating questions about vapor migration and indoor air conditions.

For lenders, brokers, and commercial real estate professionals, neighboring-site impacts can create uncertainty during transactions, especially when historical industrial operations are involved. Targeted follow-up investigations help determine whether these concerns represent actual business risk or manageable environmental conditions.

Environmental Assessment

McAlister GeoScience performed indoor air sampling within accessible portions of the warehouse facility to evaluate whether historical releases from the neighboring property had affected indoor conditions at the subject property.

The assessment focused on evaluating potential vapor intrusion concerns associated with chlorinated solvents and other compounds commonly associated with historic industrial manufacturing activities. Sampling was designed to determine whether conditions within the building represented a material concern for current industrial use and occupancy.

Key Findings

Indoor air sampling identified low concentrations of several compounds within the warehouse portion of the building. Two compounds, tetrachloroethene (PCE) and benzene, were detected at concentrations slightly above conservative industrial screening thresholds in one sampling location.

Importantly, findings indicated that the observed concentrations were limited in nature and consistent with localized conditions associated with the neighboring property’s historical operations rather than evidence of widespread impacts across the site.

Based on building conditions and operational characteristics, impacts within office spaces were not expected to present concern, particularly in conditioned indoor environments utilizing standard HVAC systems.

Outcome

The investigation successfully characterized potential indoor air conditions associated with neighboring historical operations and provided clarity regarding transaction-related environmental risk.

Most importantly for stakeholders, the assessment concluded that no additional investigation or remediation was necessary at this time.

For lenders, brokers, and property owners, targeted investigations like this can help move deals forward by replacing uncertainty with data-driven decision making. Understanding whether neighboring historical uses create actual exposure concerns or simply perceived risk, can make a significant difference in maintaining transaction timelines and reducing unexpected hurdles during due diligence.

Environmental concerns do not always originate on the subject property itself. Evaluating off-site influences early can help identify potential issues before they impact financing, acquisitions, or redevelopment plans.

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