Before investing in real estate, you need to be aware of the environmental risks associated with the property you are buying. This typically starts with having a Phase I Environmental Site Assessment conducted. If this assessment reveals historical use on or off the property that could significantly impact the indoor air quality of your building, it’s a red flag.
What is Vapor Intrusion?
Vapor intrusion occurs when hazardous chemicals like chlorinated solvents or petroleum vapors from contaminated soil or groundwater seep into buildings. These chemicals are commonly used in businesses like dry cleaners, tanneries, auto repair shops, and various commercial and industrial operations.
The Impact on Your Investment
Ignoring the potential for vapor intrusion can lead to health risks for building occupants, legal liabilities, and financial losses from property devaluation and remediation costs. One of the commonly encountered chemicals is trichloroethylene (TCE). This chemical is a known carcinogen. Additionally, studies have shown that a pregnant woman’s exposure to TCE during her first weeks of pregnancy can increase the chance of a fetal heart defect.
A Must for Investors If investing in a site (or in a property near a risky site) with a concerning environmental history, CRE investors should prioritize comprehensive environmental assessments that encompass evaluating potential vapor intrusion risks. This ensures the safety, compliance, and sustainability of your properties.
Your Next Step: Partner with Experts
Expertise in this field is vital. Phoenix Environmental specializes in assessing and mitigating vapor intrusion risks. They provide the necessary guidance to make informed decisions about your real estate investments. Reach out to Phoenix Environmental to ensure the longevity and profitability of your properties.
This post was co-created by Phoenix Environmental and ChatGPT.