Environmental Radius Report
Everything You Ever Wanted To Know About Environmental Radius Reports.
An Environmental Radius Report is transaction due diligence people purchase when commercial property changes hands. Environmental Radius Reports are also known as a Desktop Environmental Review, Desktop Risk Assessments, or Environmental Screens. The best use of an Environmental Radius Report is when you need a fast, inexpensive overview of the environmental risks associated with a property.
Who Buys Environmental Radius Reports?
Sellers include a Desktop Environmental Review as part of their marketing materials. These environmental reports give buyers insight into how difficult getting through the Phase I ESA will be when the buyer goes for financing. It’s a signal, loud and clear to buyers. The seller is a straight dealer even (especially) when the reports come back with environmental concerns. Often, these environmental radius searches are done at the request of the real estate agent or mergers and acquisition professionals to help ‘grease the skids’ of a deal.
Buyers who are moving quickly with multiple options on facilities to purchase use environmental screens to help narrow their choices. In addition, investors who are buying property with cash sometimes use environmental screens as a minimum effort before closing. We don’t recommend it.
Banks often run desktop environmental reviews on every commercial transaction that is below a certain dollar amount. Sometimes the data that comes back is too much to process. At that point they ask us for interpretation so they can rest easy and close the loan.
Desktop Environmental Reviews are very high level, there’s not a lot of fine detail. An analogy would be like reading the headlines of a newspaper without reading the article. You can figure out a lot from the headlines, but sometimes the headlines are frightening. A professional needs to read the story at length. To solve this problem we have two price points, $59 for an automated response, and $99 for a scientist reviewed report. If your environmental screen leaves you with questions, you can upgrade to have a scientist tell you what you need to worry about.
The Turnaround Times:
An Environmental Radius Report is the fastest turnaround environmental product you can buy. You can typically have an answer in two hours. If you need a scientist’s review it’ll be done in three hours.
If you requested your Environmental Screen without review you’ll receive; the database results, a radius map showing your property and the proximity of any environmental issues. For the lowest price-point there is no cover letter explaining any further detail. A buyer of the subject property determines for themselves if any issues raised from the database report were worrisome. If you ordered the “with review” option for an additional $40, you’ll receive an email with a paragraph from the scientist. It’ll speak to any issues raised by the database which might be concerning.
As with all products, an Environmental Radius Report has limitations. They are the lowest level of Environmental Due Diligence but also the fastest and least expensive. Environmental Screens don’t carry any official weight with the Small Business Administration (SBA) or bank. They aren’t a limitation to environmental liability from any previous owner or use of the property. Environmental Screens are simply a tool to identify potential risks. Even the scientist’s opinion is limited to what the database returns and the data that is quickly derived. There are no warranties or guarantees. If you need work that is guaranteed, you’ll need to choose either a Records Search with Risk Assessment or a Phase I Environmental Site Assessment (ESA). Both of these options take more time and money but are deeper dives into the data available regarding your site.