Phase 1 Environmental Site Assessments (ESAs)
A Phase 1 Environmental Site Assessment (ESA) is an evaluation and report of environmental risks that commercial real estate either currently faces or could face in the future. The ESA must adhere to ASTM Standard E1527-13 and the All Appropriate Inquiry (AAI) requirements to protect purchasers of commercial property. It is common that a Phase 1 ESA is required by a lending institution providing the funding for a purchase or refinancing.
Phase 1 ESA
Considerations
Purpose of Phase 1 ESA
Phase 1 Environmental Site Assessments (ESAs) are designed to identify any Recognized Environmental Conditions (RECs) that may be present on a property.
When a Phase 2 ESA May Be Needed
If RECs are identified during a Phase 1 ESA, a more detailed Phase 2 ESA may be required to investigate further and determine the extent of potential contamination.
Complex Sites Require More Resources
Industrial and other complex properties typically demand more time and effort to evaluate, often resulting in higher costs due to the depth of research and review needed.
Only Qualified Professionals Can Sign Off
According to ASTM standards, an “environmental professional” must sign off on a Phase 1 ESA. This ensures the assessment meets industry and regulatory expectations.
Experience Matters
Phase 1 ESAs are subjective by nature. Hiring a firm with deep experience helps reduce bias and increases the accuracy and reliability of the findings.
Validity and Updates
A Phase 1 ESA is valid for six months. After that, it can be updated within one year, but if significant changes have occurred on or around the property, it’s often best to commission a new assessment.
What is Included in a Phase 1 ESA
Initial Research & Questionnaires
- Prepare and distribute owner and user questionnaires
- Interview site tenants, property owners, local officials, and other key sources
Historical & Regulatory Records Review
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Analyze federal, state, local, and municipal environmental database records
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Review historic land use, previous environmental reports, and historic permits (including USTs)
On-Site Reconnaissance
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Conduct a physical site visit of the subject and surrounding properties
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Document conditions through site photography
Aerial & Fire Map Analysis
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Review aerial photographs
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Evaluate Sanborn Fire Insurance Maps for historical site activity
Geologic & Utility Context
- Assess local geology, soil characterization, and groundwater use
Supporting Documents & Final Report
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Review building department records, tax assessments, and title documents
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Deliver a detailed report summarizing findings with recommendations, if applicable
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