A common assertion is that contamination destroys a property's value. Industrial property has been as hard-hit by the need to conduct remediation as any property class. This office has studied the industrial market in depth. Our observation is that the effect of contamination is more often not to permanently eliminate all value but, instead, to make a property temporarily unmarketable. When a contaminant is found on a property, its extent is typically not fully known.
Testing is required to determine the extent of the contamination.
A program for clean-up must be presented to and accepted by government agencies. At that point, the cost of clean-up can be calculated. Just as few of us will buy a package without knowing what is inside, few buyers of real estate will make a purchase without reasonably complete information. Reasonably complete information for contaminants requires determination of their extent and knowledge of remediation cost. Contamination and its resulting uncertainty may for a time make a property unmarketable.