Should properties with tenants using gas or oil be avoided when considering the purchase of a net leased retail property?
A property’s environmental report (and associated documents) are almost always included with the due-diligence property documents. These reports describe in detail the environmental status of a property and the surrounding area. Though a certain amount of caution should be exercised when investing in a property whereby the tenant is using hazardous material, the risk is generally low. This is true especially for newer properties that meet current regulations and building codes. National companies, which use these materials, have strict standards for use and disposal, which mediates an investor’s risk factor.
