Phase I ESA

See Environmental Site Assessment


Frequently Asked Questions about Phase I Environmental Site Assessments (ESA)

A Phase I Environmental Site Assessment (ESA) is a formal study conducted to identify any potential or existing environmental contamination liabilities on a property. It is typically required during due diligence before a property acquisition or financing.

For more detail, refer to the related glossary entry titled Environmental Site Assessment and ESA.

If contamination or risk of contamination is identified, a Phase II ESA may be required. This follow-up study involves testing soil, groundwater, or building materials to confirm and quantify environmental concerns.

While not legally required in all cases, a Phase I ESA is strongly recommended for any commercial real estate transaction and is often required by lenders and institutional investors to assess environmental risk.

A Phase I ESA involves a review of records, visual inspection, and interviews to assess potential environmental concerns. A Phase II ESA goes further by collecting physical samples and conducting laboratory testing.



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