Back to Glossary

Transaction Terms

Phase I Environmental Site Assessment

Records-based investigation to identify potential environmental contamination. Required by virtually every commercial lender.

Full Definition

A Phase I ESA is conducted per ASTM E1527-21 standard by a licensed environmental consultant. It includes historical aerial review, environmental database searches, on-site inspection, and interviews. The goal is to identify Recognized Environmental Conditions (RECs). If RECs are found, a Phase II ESA with physical sampling may be required. Cost: $2,500-$4,500. Timeline: 2-3 weeks.

Related Terms

Phase II ESA

Physical environmental testing with soil borings and groundwater sampling, triggered when a Phase I identifies contamination risks.

Due Diligence

The investigation period after contract signing, typically 30-90 days, when buyer inspects everything about the property.

Ready to Apply Phase I Environmental Site Assessment?

We can help you understand how this concept applies to your specific commercial real estate investment or transaction.

Talk to an AdvisorAll Glossary Terms

Get Market Insights Delivered

Weekly Central Florida CRE updates — cap rates, new listings, market trends, and investment opportunities. No spam, unsubscribe anytime.