Office building environmental due diligence: what buyers check
Offices are among the cleanest property types, so a pre-screen is often enough to confirm there is nothing to chase.
Why office buildings carry this risk
Office use itself rarely causes contamination. Findings usually come from the land's history or from a neighbor.
Larger buildings have backup generators with diesel tanks, and older ones had boilers fed by heating oil.
What usually turns up
Generator and heating oil tanks
Worth checkingDiesel for emergency generators and old heating oil tanks are the most common onsite finding.
Former use of the land
Usually minorDowntown offices often replaced filling stations, printers or small plants.
Neighboring cleanup sites
Usually minorNearby dry cleaners and stations can bring vapor questions.
What the pre-screen checks for a office building
- Historical aerials and maps for past uses of the parcel.
- State tank lists for generator and heating oil tanks.
- Cleanup sites within a quarter mile.
- Flood zone for the building and below-grade parking.
Pre-screen a property before you spend on a Phase I
A desk review of one address: past uses from historical photos and maps, federal and state environmental records, and flood risk, ready usually within the hour. $100 for one report, or $100/month for 3.
Questions to ask the seller
- Is there a backup generator, and where is its fuel tank?
- Was the building ever heated by oil?
- Any prior Phase I or environmental report?
- Has the basement or garage ever flooded?
When to order a full Phase I
Order a full Phase I when the lender requires one or the pre-screen finds an onsite tank or a nearby open case. Otherwise a clean pre-screen gives you a good read before you commit.