Abandoned and blighted properties are a difficult reality for countless communities. If these problem properties are not dealt with quickly, they can become a perfect environment for criminal behavior, health risks, nuisance animals and pests, and fire. Sometimes, a property has such extensive damage that demolishing the existing structure so something better can be built in its place is the most prudent path forward.
There are a number of factors to consider when weighing rehabilitation against demolition in a receivership case, including what the receiver can do after the structures have been demolished and cleared. We consider the following:
The Condition of the Property
Is the building salvageable in the first place? As a court-appointed receiver, our team works with qualified inspectors to look at our properties to assess the damage and to see if it can be saved from demolition.
Often, just looking at the building is not enough. A building that looks completely dilapidated may have great potential for rehabilitation because the foundation, plumbing, and roof are in good shape. Meanwhile, a building that looks okay from the outside may have such significant structural problems that it is simply not able to be saved.
Rehabilitation May Be Too Expensive
Sometimes rehabbing an abandoned or distressed property may be physically possible, but financially unwise.
A thorough economic analysis of the property should include the value of the location, the value of the rehabilitated property, and the cost of a total rehabilitation.
In the case of a nine-acre business park in Banning, CA, demolition was the most prudent path after years of destruction.
There are Significant Environmental Risks
Because many distressed or abandoned properties sit vacant for long periods—or remain open to weather exposure—it’s common for environmental issues to develop. Mold is one of the most frequent problems. In many cases, a qualified restoration company can remediate mold efficiently, but not all structures are salvageable, particularly when moisture intrusion has been long-term or severe.
Lead and asbestos present additional risks, especially in older buildings constructed before modern environmental regulations. These materials were once widely used in paint, insulation, flooring, and other building components, and they require specialized handling and compliance-driven remediation. These issues can pose significant health risks in addition to environmental concerns.
A comprehensive environmental assessment is essential. It determines whether the property is structurally and financially viable to rehabilitate, identifies the true scope of remediation required, and provides a more accurate projection of project costs and timelines.
Post-Demolition Considerations
When a structure is beyond repair, demolition can be an efficient way to restore immediate safety and eliminate hazardous conditions. But demolition is not the end of the process—it’s the beginning of the next phase of property recovery.
A key question after demolition is what the long-term plan for the parcel will be. Leaving a lot vacant may seem like an improvement, but a bare lot is only marginally safer than an abandoned building. Research consistently shows that demolition alone does not reduce neighborhood crime or eliminate nuisance conditions.
Vacant lots still invite trespassing and loitering, illegal dumping, vagrancy, public health hazards, ongoing maintenance burdens, and persistent visual blight. This is why demolition must be paired with a strategy for reuse. Facilitating the sale or lease of the parcel to a qualified buyer—especially someone ready to build or redevelop—creates meaningful community benefit. Productive reuse adds value, activates the space, supports local economic health, and breaks the cycle of deterioration abandoned properties create.
Demolition is a powerful tool, but it’s only one part of a comprehensive revitalization plan.
Receivership Can Help
If the property is in receivership, the receiver can do more than just facilitate the demolition. A court-appointed receiver can also assess the potential for selling the property, manage the sale, and monitor the new owner's development of the land.
Cities should consider incentivizing local development of empty lots for affordable housing. Bringing in a receiver to take over abandoned properties can speed up the process from recognizing the threat to replacing it with a thriving new home or retail business.
Do you need help addressing a nuisance property?
Griswold Receivers been appointed in hundreds of different courts to help address blighted and abandoned properties. To learn more about how the receivership remedy may solve your neighborhood's needs, contact us.
