A Phase I ESA (Phase I ESA) is important because it helps protect your liability. Especially, when buying commercial real estate. Whether it’s a vacant land or a property with 10 buildings. A properly prepared Phase I ESA is a key part of the environmental due diligence process. Simply put – it helps identify historical or present day concerns related to the subject site.
The Phase I ESA helps identify historical uses that could impact the subject site, even today. Example of historical uses that can be of concern are dry cleaners, gas stations and types if industrial uses that can leave an environmental impact on a property. It can be seen as a type of insurance – in case surprises arise after buying the property. Certain high risk uses can impact the property in a way that contamination can exist 20, 30 or 40 years later.