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PFAS hidden risks in industrial real estate

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PFAS hidden risks in industrial real estate

Understanding Per- and Polyfluoroalkyl Substances (PFAS)

On 3 February 2026, the UK Government published its inaugural ‘PFAS Plan’ setting the stage for a more proactive stance on the research, monitoring and regulation of PFAS. Will this landmark policy paper and emerging global trends reshape the industrial real estate sector?

Here’s what property owners, investors, and operators need to know:

What are PFAS?

PFAS, often dubbed ‘forever chemicals’, comprise more than 10,000 synthetic chemicals used for their resistance to heat, water and oil. Their durability, however, comes with a cost. PFAS persist in both the environment and human body, accumulating over time and resisting breakdown due to their robust carbon-fluorine bonds. Linked to liver, kidney, immune and reproductive issues, and classified as carcinogenic, PFAS represent a growing health concern that cannot be ignored.

Where are PFAS found?

These chemicals permeate a vast array of products including textiles, furniture, electronics, semiconductors, printing facilities, firefighting foams, plastics, coatings, and much more. PFAS hotspots typically include sites where these substances are manufactured or used in bulk, but contamination is far-reaching, affecting soil, groundwater and surface water at and near industrial sites, airports, fire training grounds and landfills.

Why should industrial funds take notice?

Global regulatory scrutiny is intensifying. While the UK has yet to impose a blanket ban, restrictions on certain PFAS substances are in place and the recent PFAS Plan signals further reviews are imminent.

Environmental guideline values exist for select PFAS compounds, but this space is rapidly evolving, thresholds will likely tighten as scientific knowledge expands. Investors face mounting litigation risks and reputational hazards tied to contaminated sites, with PFAS liabilities threatening asset valuations.

Mitigating PFAS risk in industrial property transactions

Buying industrial land or property

• Question vendors about site activities and PFAS use or storage

• Commission a PFAS-specific Phase I Geo-Environmental Risk Assessment, investigating both historic and current site use –think firefighting foams and manufacturing – and proximity to known PFAS sources

• Follow up with a Phase II Geo-environmental Risk Assessment, including soil, groundwater, and surface water sampling for PFAS, to clarify potential liabilities

How can we support you?

We offer in-house Phase I and II Geo-environmental Risk Assessments, providing specialist advice for both transactions and existing assets.

Integrating PFAS risk into ESG policies, compliance checks, and investment strategies is no longer optional, it is essential. Early action protects asset value, ensures regulatory compliance, and builds trust with investors and stakeholders.

Please get in touch with our team to find out more:

Risk management strategies and assessing existing investments

• Map PFAS exposure across your asset portfolio, past and present

• Scrutinise supply chains and eliminate PFAS where feasible

• Redevelopment unlocks opportunities – not only for regulatory compliance but also for voluntary assessment and remediation

• Review your insurance cover, as policies may exclude PFASrelated risks

• Stay informed on shifting regulations and litigation trends

• Commit to regular review, investigation, and remediation to safeguard your investments

Ross Smith Senior Associate 01905 967089 ross.smith@fishergerman.co.uk

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