The Environmental Site Assessment is a process of evaluating the environmental liability of a real estate asset. Specifically, Environmental Site Assessment or “ESA” is the process of conducting “all appropriate inquiry” into the past or present uses of a property to determine whether the property is impacted by a “recognized environmental condition” (REC). The ESA process includes a site inspection, a review of historical records of the property, and research of records available at government agencies.
Why are Environmental Site Assessments Necessary?
ESAs are typically conducted at properties with a history of commercial or industrial use. They are performed by an Environmental Professional in accordance with the standards established by the American Society for Testing and Materials (ASTM). CERCLA’s “
all appropriate inquiries” process requires that landowners evaluate the property’s environmental conditions and assess the likelihood of any contamination.
An ESA satisfies this requirement by evaluating both the land and physical improvements that have been made to the property. These reports are typically ordered by a new purchaser of the property, a landowner that wants to better understand the environmental condition of their holding, a lender considering extending a property loan, or a regulatory agency that suspects on-site contamination. Sites and businesses that would require a site assessment may include:
Industrial sites
Commercial properties
Shopping centers and strip malls
Manufacturing facilities
Properties being purchased or sold as part of a real estate deal
Many others
