An environmental site assessment (ESA) is a process used to evaluate the potential environmental risks associated with a property and is mandatory when acquiring most types of commercial real estate.
The specific steps in an ESA can vary depending on the type of property and the scope of the assessment, but generally, the process includes:
- Site reconnaissance: This includes a visual inspection of the property to identify any obvious environmental concerns, such as visible contamination, hazardous materials, or underground storage tanks.
- Records review: This includes researching the property’s history, including past land use, ownership, and any known environmental issues. This can include reviewing historical maps, aerial photographs, and other documents.
- Interviews: This includes conducting interviews with current and past property owners, tenants, and other parties who may have knowledge of the property’s history and environmental conditions.
- Sampling and testing: This includes collecting samples of soil, water, air, and other materials from the property to determine the presence of contaminants, such as heavy metals, pesticides, and hydrocarbons.
- Data analysis: This includes analyzing the data collected during the site reconnaissance, records review, interviews, and sampling and testing to identify any potential environmental risks associated with the property.
- Risk assessment: This includes evaluating the potential risks associated with the property, such as the likelihood of contamination and the potential impact on human health and the environment.
When purchasing commercial property it is important to understand the importance of an ESA and prepare properly for this key step.
Alternatively, you can partner with an experienced Asset Manager who has completed ESA’s and has worked extensively with consultants and Environmental Engineers and can navigate the process to support the goals of the real estate investment.