Environmental Planning and Waste Management Sydney

Sydney office: (02) 8056 1849

Due Diligence Before Leasing or Buying a Property for Development

Before leasing or purchasing a property for commercial or industrial purposes, it is crucial to carry out thorough due diligence on the site. A property may look like a great deal on the surface, however if you skip the due diligence steps you may be up for huge costs or development refusal later. Careful assessment of planning, environmental, and infrastructure constraints will help you understand exactly what you are committing to.

Factors to be considered before leasing or buying a property:

1. Planning and Land Use

  • Zoning: Is the intended use of the property compatible with its zoning and nearby land uses?
  • Permissibility of use: Is the intended use permitted with consent, or prohibited under current planning controls?
  • Site compliance: Are any site upgrades needed to comply with current planning controls or the National Construction Code requirements?
  • Existing consents: Does the property have any existing consents for buildings and/or uses?
  • Occupation Certificate: Have the existing buildings (if any), been approved with an Occupation Certificate?
  • Easements and covenants: Are there any significant easements or covenants affecting the land?
  • Nearby planning proposals: Are there any sensitive land use planning proposals in the surrounding area (e.g. potential residential developments)?

2. Site and Environmental Constraints

Environmental considerations can heavily impact development:

  • Contamination from past industrial uses may require remediation before development
  • Bushfire risk
  • Flood risk
  • Location of riparian lands and water courses 
  • Biodiversity constraints which may limit the size of the development envelope
  • Aboriginal and European cultural heritage constraints
  • Acid sulfate soils or soil salinity
  • Traffic and access 

3. Services and Infrastructure

If your site lacks any of the following, it can be costly to implement:

  • Availability of water, sewer, and NBN services
  • Access for vehicles, especially heavy trucks
  • Ability to connect to power and the capacity for usage 
  • Ability to connect to stormwater systems

These considerations can be complex and interrelated, which is why due diligence must be approached in a structured and professional way. As environmental and industrial planners, due diligence is undertaken by documenting all relevant factors into a clear and structured report. Zoning and existing consents are reviewed, and council records are examined to understand the site’s history. Contractors such as engineers, architects, and environmental specialists may be needed to identify potential risks or constraints. The availability of essential services and infrastructure is also assessed, clarifying what is already in place and what may require further investment. This process ensures that decisions are made with a full understanding of the site’s opportunities and limitations.

If you need support navigating the due diligence process, our team of experienced environmental and industrial planners are here to help. Reach us at (02) 8056 1849 or email us at admin@jacksonenvironment.com.au. More info at https://www.jacksonenvironment.com.au

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