My only thought when it comes to buying a shop and property---Is the ground clean? No buried tanks, No contamination. the property has a clean bill of health. Because old shops and past businesses
have a tendency to hide things like that, banks and loan sharks usually want to know. But once buried and conveniently covered up who is the wiser. It does happen.
That's what a Phase 1 Environmental report is for. Pretty much any commercial lender will require one. Basically it's a review of deeds, tax records, business licenses, property maps, arial photos, etc of the subject property and the surrounding parcels.
If something raises a flag like an oil company, gas station or dry cleaner was located on the site or next door it goes to a Phase 2 which is more involved, usually drilling the site and testing the soil.
I've had many PH 1's and 2's conducted over the years. Haven't had one done in over 10 years but back then a PH 1 ran $1,000-1500 and PH 2 varied from $3,000 - 10,000 depending on scope.
