WASHINGTON, D.C. – April 5, 2013 – (RealEstateRama) — While coming off the worst economic conditions since the Great Depression, economists and analysts have pointed to a strong and growing commercial real estate industry as well as a vibrant and stabilized construction industry as a symbol of a mending U.S. economy. One key barometer of commercial real estate trends is the due diligence industry, which is a leading indicator of real estate transactions, financing and development. In most cases, due diligence services are required three to four weeks prior to closing or development.
As a market monitor, Partner Engineering and Science Inc. (Partner), a national environmental consulting firm headquartered in Torrance, Calif. and one of the country’s fastest-growing companies, has seen the demand for due diligence services as well as construction risk management services increase substantially in 2012. With the firm’s unique boots-on-the-ground perspective, they are predicting even greater demand in 2013.
Demand for one due diligence service in particular, the Phase I Environmental Site Assessment, are tracked nationally by Environmental Data Resources, Inc. as reported in their quarterly ScoreKeeper report. These statistics give a good indication of recovering property markets, and include the following trends for the 4th Quarter 2012:
• Phase I Environmental Site Assessments (ESAs) increased by 34 percent in the 4th Quarter of 2012 when compared to the same period of 2011 with the number of transactions up in all regions
• The Q4 results show four consecutive quarters of growth for the national commercial real estate lending industry
• Regions exhibiting the strongest growth rates with the highest number of Phase I ESA volume throughout the United States in Q4 include: Las Vegas; Orange County, Calif.; Richmond, Va.; Sacramento, Calif.; San Antonio; Houston; Philadelphia; Pittsburg; Inland Empire, Calif.; and Phoenix.
• California and the South showed the greatest increase in regional Phase I ESA markets relative to the same quarter of 2011, with California increasing 45 percent in Q4 of 2012 and the South increasing 42 percent in Q4 of 2012
As the number one Phase I ESA provider in the United States as well as a market leader for engineering due diligence services and construction risk management, Partner has a variety of experts that can comment on the returning commercial real estate and construction industries as well as the following topics and trends, among others:
• General commercial real estate and due diligence trends for 2013 on a national, regional and/or local scale. This data is gathered both from the quarterly ScoreKeeper reports as well as Partner’s own metrics.
• Risk management approaches for the returning construction industry
• Changes to current standards associated with Phase I ESAs and what that means for the CRE finance community
• Tightening of Freddie Mac inspector qualifications
• Increased demand for engineering due diligence, in part due to distressed assets that were not well maintained throughout the recession
• Approaching changes to seismic report standards and local ordinances requiring seismic retrofits for unstable buildings
For more information on any of the statistics provided or to schedule an interview on these and other topics, please contact Melinda Peffer (), Erik Hamilton () or Leeza Hoyt () at 310.373.0103.
About Partner Engineering and Science, Inc.:
One of the fastest-growing private companies in the United States, Partner Engineering and Science Inc. (Partner) is a national environmental and engineering consulting firm specializing in evaluating properties in connection with real estate transactions, development or management. This includes: Environmental Due Diligence; Subsurface Investigations and Remediation; Industrial Hygiene; Property Condition Assessments; Seismic Risk Assessments / Probable Maximum Loss; Energy Audits, Engineering and Implementation; Land Surveying; and Construction Risk Management. Based in Torrance, Calif., Partner has over 200 employees in 24 offices nationwide.
About Environmental Data Resources, Inc.:
Environmental Data Resources, Inc. is a recognized industry market monitor and information services firm. A quarterly service, ScoreKeeper provides strategic intelligence on Phase I Environmental Site Assessment (ESA) activity, analyzed by region, state, metropolitan area and individual firm. For more information or to request additional EDR ScoreKeeper reports, visit www.edrnet.com/scorekeeper.