As climate policy tightens at both state and federal levels, Florida’s commercial real estate market is adjusting to new environmental regulations that are reshaping property sales, due diligence, and development approvals. These 2025 updates, especially in coastal and flood-prone areas, impact both buyers and sellers across the state.
Key Regulatory Changes
- Stricter Phase I Environmental Site Assessments (ESAs): Updates to ASTM standards require more detailed historical reviews and risk screening for emerging contaminants like PFAS.
- New flood risk disclosures: Certain counties now mandate flood resilience assessments or elevation certificates before transfer of commercial property.
- Stormwater and impervious surface restrictions: Developments may be required to reduce runoff or implement green infrastructure.
- State and municipal incentives for green building: Compliance with LEED or other sustainability standards may offer expedited permitting or tax benefits.
Impact on Transactions
Buyers must conduct more robust due diligence to avoid acquiring properties with environmental liabilities. Sellers may face price negotiations or deal delays if environmental reports raise red flags.
Best Practices
- Engage environmental consultants early
- Use updated ESA templates and review new state/local requirements
- Work with legal counsel to allocate liability for cleanup or mitigation through indemnities or insurance
Environmental risk is now a central issue in Florida CRE transactions. Investors and developers should treat regulatory compliance as a value driver—not just a checkbox.
