When evaluating a commercial property, the current use often tells only part of the story.
Many environmental concerns are associated with activities that occurred decades ago and may leave little visible evidence today. A vacant lot may have once been a gas station. A modern office building may have previously housed a dry cleaner. A warehouse may have been part of a larger industrial operation.
Understanding how a property was used historically is often one of the most valuable steps in environmental due diligence.
Historical use does not automatically indicate contamination exists. However, certain past uses frequently warrant additional evaluation because they have a greater potential for environmental impacts.
1. Former Gas Stations and Fueling Facilities
Gas stations remain one of the most common property types associated with environmental concerns.
Potential issues include:
- Underground storage tanks (USTs)
- Petroleum releases
- Dispenser island impacts
- Groundwater contamination
- Historical fuel system components
Even when tanks have been removed, questions may remain regarding historical releases and whether remediation was completed.
2. Dry Cleaning Facilities
Dry cleaners are often associated with chlorinated solvents, including compounds that can persist in soil and groundwater for extended periods.
Potential concerns include:
- Solvent releases
- Groundwater impacts
- Vapor intrusion
- Migration beyond property boundaries
Because dry-cleaning operations were frequently located in small commercial buildings and shopping centers, historical operations are sometimes overlooked during property evaluations.
3. Manufacturing and Industrial Facilities
Industrial properties can involve a wide range of environmental concerns depending on the nature of the operations.
Potential issues may include:
- Solvents and degreasers
- Petroleum products
- Metals
- Chemical storage
- Waste handling and disposal practices
The specific industrial process is often more important than the building itself. Two manufacturing facilities may have very different environmental risk profiles based on the materials and processes used.
4. Automotive Repair Facilities
Automotive repair facilities are frequently overlooked during due diligence, but can present environmental concerns similar to larger industrial operations.
Potential issues include:
- Waste oil management
- Fuel storage
- Solvent use
- Floor drains
- Historical underground storage tanks
The environmental significance often depends on the duration of operations and historical waste management practices.
5. Railroads and Rail-Served Industrial Properties
Rail infrastructure has played an important role in industrial development throughout Pennsylvania, New Jersey, Delaware, and Maryland.
Properties associated with rail operations may warrant additional evaluation due to:
- Historical fuel handling
- Herbicide applications
- Industrial loading and unloading activities
- Historical fill materials
- Manufacturing operations associated with rail service
Many redevelopment projects involve properties that were historically connected to rail operations, even when little evidence remains today.
6. Firefighting Training Areas and Facilities with Historical AFFF Use
As environmental regulations continue to evolve, properties associated with historical firefighting foam use are receiving increased attention.
Potential examples include:
- Airports
- Military facilities
- Fire training areas
- Industrial facilities with fire suppression systems
- Bulk fuel storage facilities
These properties may have potential concerns related to per- and polyfluoroalkyl substances (PFAS), which have become an important area of environmental investigation and regulatory focus.
While not every property associated with historical foam use has PFAS impacts, understanding the history of firefighting activities can be an important component of environmental due diligence.
Historical Uses Are Not Always Obvious
One of the challenges of environmental due diligence is that historical uses may no longer be visible.
Examples include:
- A retail center that was once a gas station
- Office space that formerly housed a dry cleaner
- A warehouse constructed on a former industrial site
- Vacant land that was previously rail-served
This is why historical research remains a critical component of evaluating environmental risk.
Practical Questions to Ask
When evaluating a property, consider the following:
- What was the property used for 20, 50, or 100 years ago?
- Were hazardous materials stored or handled onsite?
- Were underground storage tanks present?
- Have previous environmental investigations been completed?
- Are there open regulatory files associated with the property?
The answers can help identify potential concerns before they become unexpected challenges during acquisition, financing, or redevelopment.
Final Thoughts
Historical property use does not automatically indicate contamination exists. However, understanding how a property was used often provides valuable insight into the environmental questions that should be asked before acquisition or redevelopment.
Environmental due diligence is most effective when it identifies potential concerns early, allowing buyers, lenders, attorneys, and developers to make informed decisions and avoid surprises later in the process.
As environmental regulations continue to evolve, historical property research remains one of the most valuable tools for understanding environmental risk.