What is a Phase I ESA?

A Phase I Environmental Site Assessment (Phase I ESA) is the first step into investigating if there is a potential for environmental risk or contamination that would affect a property’s value and if additional investigation and testing is warranted. When purchasing a piece of commercial or industrial real estate (or similar transaction such as a lease or refinance), a Phase I ESA allows for the buyer or property lender to understand their potential liability when it comes to environmental risks on their property. If environmental hazards are discovered, this may affect your overall project budget, purchasing power, or add additional time to your project timeline.

Why would I need a Phase I ESA?

A Phase I ESA allows for the buyer or property lender to understand their potential for existing environmental contamination liabilities that could hold them responsible for the cost of remediation, even if the contamination was found after the purchase and they were not the cause of it. Additionally, Phase I ESAs are not strictly limited to commercial properties – residential, large tracts of undeveloped land, or rural properties may also be assessed if an interested party is so inclined.