Renting an office space for your business can involve some research and legwork to determine if the real estate you are considering is right for your business. Not only do you consider your business’s specific needs, but you also want to look at more general factors, such as the environment of the site itself. Here are a few questions and answers about this aspect of commercial property rental:
- What exactly is an environmental site assessment? An environmental site assessment checks to determine whether real estate property is contaminated by any hazardous waste materials. There are two different types of environmental site assessments, one more rigorous than the other. A Phase I assessment involves simply a review of certain records and an inspection of the location, but no drilling, boring, or testing of land and water samples. However, a Phase II assessment does include more intense measures such as drilling and testing and can cost a lot more.
- Do I need an environmental site assessment before I purchase commercial property? Sometimes lenders require an assessment, and often it makes sense to get one in instances where you business deals in manufacturing or if you are purchasing a service station. If these situations don’t apply to your case, it can be tempting not to get an assessment, but skipping this step could be a big liability to you if an environmental problem arises during your lease, even if the problem was not directly your fault.