Since 2008 in the aftermath of the Great Recession, many companies have been holding onto their cash and avoiding large real estate purchases. In addition, compared to historic data credit has been tight. Banks and Credit Unions were just not lending as often or as much as in the past.
However, over the last 12 months the tide has changed. We are seeing a greater interest on the part of lenders to lend. This, along with the facts that interest rates are at historical lows and companies can not get a decent rate of return on their cash holdings is leading to a surge in commercial real estate transactions. We are seeing these transactions particularly in metro areas such as Miami that is coming back strong.
Certain large parcels such as former auto service centers or auto dealerships are particularly attractive due to their size and locations. However these properties do come with environmental challenges. For example, there may be or may have been gasoline tanks or hydraulic lifts on the premises or other sanitary issues that need to be addressed.
These former historic uses are a great opportunity for consultants to discuss environmental challenges related to these properties with potential buyers. Environmental consultants, like MECC, are tasked with investigations, reporting, and developing budgets for remediation.
Similarly, sellers are seeking out environmental consultants to confirm the reports presented to them by buyers. At MECC, we are currently working with several clients on former auto-related properties.
If you are interested in more information on how the economy is impacting the environmental and real estate markets, or the environmental impact a former automotive business may have on a property, contact us.