Commercial realestate transactions can be highly complex. The lack of a property condition assessment NJ can lead to unforeseen problems after land acquisition. Without a proper evaluation of the area beforehand, the unaddressed property issues can affect operations, lead to higher expenses, and pose risks to workers.

A Phase I Environmental Site Assessment (ESA) is part of commercial property transactions. It determines the historical and current property uses. It assesses whether past or ongoing use of the property has led to contamination.

The Importance of a Phase I Environmental Site Assessment

The ESA checks the quality of the soil or groundwater below the property to distinguish if it can be potentially harmful to human health or the environment. A phase I ESA report protects the seller from liability for issues arising from contaminated properties. It also helps determine the property’s value and protects the buyer from making ill-informed investments. 

Phase 1 environmental site assessments are required when acquiring manufacturing facilities, commercial structures, agricultural sites, industrial properties, and vacant lots.

The Phase 1 ESA Process

There are four phases to Phase I environmental site assessment: records review, site inspection, interview, and reporting. The ESA process begins with thorough research of the property’s government environmental records and historical use. Then, a site visit is conducted to determine if any potential ecological concern is present. Next, the environmental or commercial building inspector NJ will interview past and current owners, personnel, operators, occupants, local government officials, or individuals with site knowledge to learn more about the property. Lastly, a report is created highlighting property observations. A Phase II ESA is recommended if the property shows signs of contamination.

Knowing the practices and procedures in commercial property transactions is vital to the benefit of landowners and investors. Read more about phase I environmental site assessments in New Jersey through this infographic by Lockatong Engineering.