Environmental Site Assessment
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. A
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
