- Why Environmental Assessments Are So Vital -

When purchasing a commercial property you have to think about the environmental aspects of the site.

Contaminants can enter the soil via careless waste disposal, accidental spills, historical contamination and mismanagement of hazardous wastes.

Environmental site assessments should be an integral part of the due diligence package undertaken in order to assess the viability of a commercial site. It’s a necessary step to protect your investment in the property.

There are serious concerns about environmental contaminants as they can cause acute, long-term health effects. They can also create safety hazards and have detrimental effects on local plant and animal populations.

As a result of these very serious issues, more individuals and corporations are being charged and convicted of offenses related to site contamination. In addition, there is also the inherent expense associated with the cleanup of a contaminated site to consider when purchasing one.

An environmental site assessment (ESA) is part of the solution to problems associated with environmental contaminants. The assessments are done by experts to determine if a site is contaminated. A comprehensive ESA should identify the extent of any contamination on a specific site.

The assessment consists of three distinct phases:

Phase 1 is a preliminary evaluation designed to identify sources of actual or potential contamination. The collection process involves research about the site, a site inspection, interviews and a written report. This process is often termed a “preliminary risk survey,” as there is no invasive testing conducted to determine the extent of any contamination.

Phase 2 is a more in-depth assessment of the site and should be completed if Phase 1 reveals any evidence that suggests the site has been contaminated. The purpose of the Phase 2 assessment is to confirm the presence and type of contaminants at the site. The assessment makes use of various measuring, sampling and analyzing techniques in order to determine the location, depth and extent of any site contamination. Some intrusive techniques such as drilling and groundwater monitoring are done during this assessment phase. A Phase 2 assessment is substantially more expensive than is a Phase 1 assessment.

Phase 1 and 2 assessments are important steps toward any remedial processes that are required to deal with contaminants.

Phase 3 is the investigative process to determine the feasible follow-up approaches to dealing with unacceptable levels of contaminates. Remedial investigations are site-specific and can be tailored to contamination found in the Phase 2 assessments. From a purchase standpoint, this third and final assessment phase will determine the viability of the site by identifying the cost to remediate the contamination.

With heightened awareness surrounding the environment, an ESA is essential to ensure that you’re protecting your investment in any commercial property. Failing to assess the environmental impacts could have costly consequences, such as fines, jail time and having to deal with the costs associated with remediation of any contamination.

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Contact a San Antonio Commercial Real Estate Expert:

Contact Luke LeGrand, ePRO via email @ luke@kwcommercialsa.com or call 210-843-5853