LOS ANGELES-Two of the leading indicators of real estate transactions, finance and development - construction services revenue and orders for due diligence reports - are showing robust growth, yet another sign that commercial real estate is bouncing back.

Joseph Derhake, president of Partner Engineering and Science Inc., tells GlobeSt.com that “I think the market's coming back. Perhaps the entire market is bouncing off the bottom and starting to ramp up.”

He cites two indicators for his optimism: construction services revenue up 60% at Partner ESI compared to the same period of the previous year, and national demand for Phase I Environmental Site Assessments, which increased by 25% in the first quarter of this year when compared to the same period in 2012.

Due diligence services are the third-party reports that are needed to assess a property prior to a transaction, including such things as environmental site assessments, property condition assessments and other evaluations. In most cases, due diligence services are required three to four weeks prior to closing or development.

The statistics on Phase I ESA's are tracked nationally by Environmental Data Resources, Inc. in its quarterly ScoreKeeper report.

While Derhake allows that occasional statistical spikes can occur because of large transactions or buyers and sellers buying the same ESA reports, he indicates that those are rarities.

As noted earlier on GlobeSt.com, Derhake explained the role of due diligence reports in a special GlobeSt.com webinar attended by more than 1,700 people.

Instant Insights /

Partner ESI Sees Reasons for Optimism

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