New EPA Guidance Clarifies Tenants' Defenses

SAN FRANCISCO-The newly issued guidance by the U.S. Environmental Protection Agency suggests that prudent long-term tenants of commercial and industrial properties should conduct environmental due diligence before entering into a lease. So says law firm Buchalter Nemer.

Firm shareholder Jeffrey Kirshenbaum, who is based in the San Francisco office, explains that “lenders who are looking to a tenant’s interest in a lease as security for a loan should ensure that the loan documents require the borrower-tenant to provide all legally required notices, cooperate with environmental authorities, and take reasonable steps with respect to hazardous substance releases.”