At YHPJ, we know that successful commercial property ownership requires input from a range of trusted specialists. That’s why we’ve invited our colleagues at SQN, experts in environmental risk management and asbestos compliance, to share their insights below on a topic that is often overlooked during property due diligence.
In our previous post, we looked at the critical due diligence steps required when purchasing a commercial property in New Zealand. While building reports and LIMs are essential, there is one hidden element that requires its own dedicated strategy: Asbestos.
If you are purchasing a commercial building built or renovated before 2000, there is a high likelihood it contains asbestos-backed vinyl, roofing, textured ceilings, or insulation. Under New Zealand’s Health and Safety at Work (Asbestos) Regulations 2016, commercial property owners and landlords face strict legal duties to manage this risk.
To help protect your investment and remain compliant, here are the essential musts and must-nots of managing asbestos during and after a commercial property purchase.
The “Musts” (your legal obligations)
- MUST identify if asbestos is present: If you manage or control a workplace, you have a legal duty to identify asbestos in the building. As part of your pre-purchase due diligence, you should request any existing asbestos records from the vendor.
- MUST create an Asbestos Management Plan (AMP): If asbestos is identified or even suspected, you must have a written Asbestos Management Plan in place. This plan outlines where the asbestos is, its condition, and how it will be monitored or mitigated over time.
- MUST commission a Demolition/Refurbishment Survey before work starts: If your long-term plan for the property involves remodeling, fit-outs, or demolition, a standard visual check isn’t enough. You must engage a specialist provider like SQN to perform an intrusive survey to locate hidden asbestos before any tradies pick up a tool.
- MUST use certified specialists for testing and clearances: Never rely on guesswork. Accurate bulk sample testing must be done through an accredited laboratory (like SQN’s IANZ-accredited AEC Labs), and an independent specialist must issue a clearance certificate before a work area can be re-occupied after removal.
The “Must-Nots” (what to avoid)
- MUST NOT disturb suspected materials: If you or a tenant plans a minor repair (like drilling into a wall or lifting old flooring) and you suspect asbestos, stop immediately. Disturbing asbestos releases airborne fibers, which are highly hazardous to health.
- MUST NOT assume a standard building report covers it: A typical pre-purchase building inspection is generally non-invasive and often excludes definitive asbestos testing. Assuming “no news is good news” can lead to massive unexpected remediation costs down the line.
- MUST NOT use uncertified contractors for removal: Removing more than 10m² of non-friable asbestos, or any amount of friable (crumbly) asbestos, requires a licensed asbestos removalist.
- MUST NOT ignore ongoing monitoring: An Asbestos Management Plan is not a “set-and-forget” document. You must review and update the plan at least every five years, or whenever there is a change in the building’s condition or usage.
How this impacts your purchase due diligence
Failing to account for asbestos can severely damage your return on investment (ROI). If a building requires extensive asbestos removal before a tenant can complete a fit-out, those costs and the resulting vacancy delays fall squarely on your shoulders.
Before finalizing your commercial property purchase, ensure you partner with experienced professionals. Consulting environmental specialists like SQN early in the piece allows you to get expert asbestos surveying, risk monitoring, and compliant management plans established before you sign on the dotted line.
This article has been provided by SQN as a guest contribution and reflects their specialist expertise in asbestos surveying, testing, risk management, and compliance. While YHPJ can assist with the financial and commercial aspects of property ownership, we encourage anyone purchasing or managing commercial property to seek advice from qualified environmental professionals where asbestos risks may exist.
If you would like to discuss the commercial or financial implications of a property purchase, the YHPJ team is here to help. For specialist asbestos advice, surveying, or management planning, we recommend speaking directly with the experts at SQN.
