EDR: Less Risk Tolerated for Environmental Due Diligence

NEW YORK CITY-The ongoing global economic turmoil has meant less of an appetite for risk on behalf of buyers and investors of commercial real estate. With few exceptions, attention has been focused on safe bets—trophy assets in key markets. According to data from EDR Insight, the analytical research arm of Environmental Data Resources which tracks tolerance for environmental risks, there is also a measurable decrease in the risk buyers and underwriters of commercial property deals are willing to take on.

Dianne Crocker, principal analyst at EDR Insight, says that several factors are behind the more in-depth look that’s being taken into potential problems like groundwater and soil contamination and vapor intrusion.