{"id":17776,"date":"2015-04-07T19:15:44","date_gmt":"2015-04-07T23:15:44","guid":{"rendered":"https:\/\/cjs.tqa.temporary.site\/website_34d9c6f0\/?p=17776"},"modified":"2018-07-16T15:07:50","modified_gmt":"2018-07-16T19:07:50","slug":"its-all-about-that-baseline","status":"publish","type":"post","link":"https:\/\/askesa.com\/website_34d9c6f0\/2015\/04\/its-all-about-that-baseline\/","title":{"rendered":"It’s All About That Baseline"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

If you\u2019ve been anywhere near a radio or a teenager this past year, you\u2019ve heard Meghan Trainor sing \u201cI\u2019m all about that bass.\u201d Throughout the song, Ms. Trainor affirms, \u201cNo treble.\u201d In our line of work, we say, \u201cIt\u2019s all about that baseline. No trouble.\u201d Environmental baseline studies are an important form of protection in many commercial real estate situations. However, people offer various reasons for failing to perform baseline studies.<\/p>\n

Common Reasons for Avoiding Baseline Studies<\/h3>\n
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  1. \u201cWhy should I spend the money to investigate? I really don\u2019t want to know what is there because if I find something I will have to report it.\u201d<\/li>\n
  2. \u201cI already paid for due diligence. Why isn\u2019t that sufficient?\u201d<\/li>\n
  3. \u201cThe prior owner (or tenant) just remediated the site, and they\u2019ve received official closure and clearance. Therefore, we know the site is clean.\u201d<\/li>\n<\/ol>\n

    Each reason appears legitimate on the surface but, simply put, failure to perform a baseline study can come back to haunt you. Baseline studies might be more palatable if people viewed them as a form of protection, akin to a single-premium insurance policy. Other people look at a baseline as a \u201cbelt and suspenders\u201d approach. The bottom line is this: a baseline study can prevent litigation. Or, when litigation is unavoidable, the baseline provides either a great defense or powerful evidence to prosecute a successful claim.<\/p>\n

    Who Needs This?<\/h3>\n

    Baseline studies should be considered by landlords when they are about to lease their property to a new industrial tenant. There are also situations where the tenant will want to perform their own baseline study so they are not liable for pre-existing issues that are rightfully the landlord\u2019s responsibility. A baseline becomes especially important when someone is leasing a property with an option to buy. Less commonly, buyers of industrial and commercial properties may find that a baseline makes sense depending upon their intended use of the property.<\/p>\n

    Baseline Studies Defined<\/h3>\n

    The purpose of a baseline study (or more accurately, a Baseline Environmental Survey \u2013 \u201cBES\u201d) is to gather environmental information and data for a building or part of a building against which change can be monitored relative to the occupancy of those premises. A BES is an invasive investigation, meaning that samples are taken and analyzed. (This is contrasted against due diligence that is, by definition, non-invasive). Baseline studies protect parties from being held responsible for environmental impacts that they did not cause. Or, looking at it from the landlord\u2019s side, baseline studies can be used to ascribe responsibility relative to the use and actions upon those premises by a tenant.<\/p>\n

    Here are a few common situations where Baseline Environmental Surveys are typically utilized. In each situation an attorney (preferably one with environmental expertise) needs to assist with negotiations and contract language.<\/p>\n