Contaminated Property Valuation
Our founder, Dr. Bill Mundy, PhD, CRE, MAI wrote the seminal article on stigma – “The Impact of Hazardous Materials on Property Value.” In 2007, The Appraisal Journal named it one of the “Nine Big Ideas” that influenced a generation of appraisers. Today our Chairman and Co-Managing Director, John Kilpatrick, PhD, MAI, FRICS, continues that legacy as the nation’s foremost expert on property stigma.
Contamination by any means can be devastating for the value of real estate. Beyond the costs of clean-up and monitoring that come with a contamination event, there are also possible impacts to the market of potential buyers, increased costs of living (for example, the need to import water), and depressed business economics, just to name a few factors. After remediation, the stigma of the contamination can continue to wreak havoc on a community.
We are regularly called upon to value the impacts of environmental contamination on adjacent and proximately located properties in both state and federal litigation matters. The stigma impact on the real estate marketplace is particularly complex and requires our deep understanding. When possible we also assist clients outside of the courtroom, providing detailed portfolio analysis to assess contamination-related risk from investment and insurance perspectives.
The transfer or development of contaminated property also poses special complications for which we are uniquely prepared. The determination of the highest and best use of such property requires attention to both pre- and post-remediation possibilities and factoring in the economic and societal concerns with both paths. We understand tax credits and other programs, which provide valuable tools to brownfield redevelopers. In some situations remediation is not a complete solution, so the “best use” must consider (for example) a permanent monitoring situation. Only when the long-term effect of contamination is completely understood can the appropriate way forward be determined.
Find out more by calling 770-334-3952 or email Dr. Clifford Lipscomb at firstname.lastname@example.org.