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There are two aspects of due diligence available to the real estate investor to make sure the building and land have no issues when they are being purchased. One is Environmental Due Diligence and the other is Engineering Due Diligence.
There are many companies that can perform the former but have no idea what the latter entails. As a true full service environmental firm, the Essel Environmental team has both Engineering Due Diligence professionals as well as Environmental Due Diligence.
Below, we touch on the fundamental differences between the two:
Engineering Due Diligence: The focus of this type of inspection is on the physical elements present within the asset. This will cover the building itself, it’s components, site features, equipment and other physical assets associated with the property. Â This is what you need to understand more about your building.Â
Environmental Due Diligence: The focus of this type of inspection is on the environmental aspect of the property. Generally, dealing with identifying potential recognized environmental conditions with the property upon reviewing the site surroundings, historical usage of the site, adjacent properties and other factors. Â This is what you need to understand more about the land your building is built on or the vacant land itself.Â
Overall, a combination of both of the above ensure you’re not purchasing a liability instead of an asset.