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Zoning in on Opportunity Connecticut’s Shift to Smarter Site Cleanup  

blog Riddhi Bihani July 14, 2025

 

For decades, Connecticut’s ageing environmental regulations have cast a long shadow over industrial redevelopment, particularly in cities like Hartford, Waterbury, and Bridgeport. But in a major step forward, the state has officially retired its longstanding Transfer Act, replacing it with a smarter, more efficient framework designed to unlock development potential across thousands of underutilized sites. This shift isn’t just a legal update; it’s a major turning point for commercial real estate in Connecticut. 

 

The Legacy of the Transfer Act 

The original Transfer Act, enacted in 1985, required property owners to investigate and clean up contamination every time certain types of properties were sold, regardless of whether contamination was present. The process was slow, costly, and unpredictable, causing many deals to fall through or sit on hold for years. As a result, many former industrial sites, known as brownfields remained vacant and fenced off, despite being in highly developable areas with strong market interest. 

 

What’s Changing: Smarter, More Targeted Regulations 

Starting in 2026, Connecticut will adopt a release-based cleanup framework, aligning with environmental standards used in most other states. Under this system, investigations and remediation are only required when actual contamination is discovered, not simply when a property changes hands. 

This new approach: 

  • Streamlines environmental due diligence
  • Reduces uncertainty for buyers, sellers, and developers
  • Encourages the adaptive reuse of underutilized industrial land
  • Makes it easier for cities and towns to attract new investment 
What It Means for CRE and Communities 

The Ballou Team has long supported practical, forward-looking policy changes that make redevelopment more accessible while maintaining environmental integrity. These reforms do just that. By replacing outdated rules with a more modern system, Connecticut is opening the door to: 

  • Revitalized downtowns and neighborhoods 
  • Job creation and local tax revenue
  • A new wave of infill development and industrial reuse 

Whether you're eyeing a warehouse conversion, planning a mixed-use development, or advising institutional clients, this change removes one of the most persistent regulatory hurdles in Connecticut CRE. At The Ballou Team, we believe in helping clients navigate change with clarity and confidence. This regulatory shift marks an exciting new chapter for industrial land use in our state, and we’re here to help you take advantage of it. Contact us to discuss how these changes may open up new possibilities for your property or portfolio. 

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