Due Diligence on Commercial Real Estate Transaction in Miami, South Florida
Safety, risk management, and environmental due diligence before a commercial real estate transaction is becoming more complex. Here are some guidelines for performing due diligence on a commercial real estate transaction involving an existing structure.
Safety Assessment:
- Is the building ADA compliant? If not, is there a current remediation plan in place?
- Safety inspection of elevators?
- Fire system adequate and inspected? Documented fire safety protocols?
- Have there been any lawsuits or complaints filed, even if dismissed, regarding safety or access issues?
Environmental Concerns:
- NPDES- is your building required to file with the EPA? Florida Environmental Protection Agency regulates stormwater drainage and gives permits for the discharge of pollutant waters into the environment.
- Lead- Has there been testing of both the soil and water for lead contamination? Does your building have a plan for assessment and abatement? If construction is planned, are the crews compliant with engineering and work practices that decrease risk of lead exposure? Has there been a previous OSHA complaint, or has there been an abatement plan in place that you will be obligated to continue?
- Asbestos- has there been an assessment and abatement program in place in the past, or is there one currently in place? Are construction crews compliant with engineering and work practices that will limit exposure to asbestos during construction?
- Was the building site contaminated before construction? If so, is there any current testing or reporting requirements with the EPA?
Risk Management:
- Does the building or business it houses have an up-to-date risk management plan?
- Does the current annual risk management report detail any issues requiring remediation or abatement that are ongoing?
- What has been the burden of liability in the past relating to safety, access, and environmental exposures? Have there been any OSHA complaints filed or fines assessed?
Resources for more information regarding safety, risk management, and environmental due diligence: FDEP, OSHA, EPA
For more information about Due Diligence on Commercial Real Estate Transactions in Miami, South Florida please contact Alejandro E. Jordan, Esq. and the commercial real estate attorneys at ESQ.title at 305-501-2836 contact us.
