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Pre-Lease Phase I Environmental Site Assessment Report

Partner frequently assists clients looking to lease real estate by doing pre-lease Phase I Environmental Site Assessments (ESA). The Phase I ESAs we provide in a pre-lease situation can be slightly different than our pre-acquisition Phase I ESAs as our clients are less concerned about CERCLA liability and the innocent landowner defenses.

Pre-lease environmental due diligence clients are often concerned about one or more of the following:

  1. Establishing a baseline to ensure that they are not blamed for a predecessor’s liabilities;
  2. Ensuring that their employees have a safe work environment; or
  3. The deal is a land lease and they will become de facto owners.

Partner typically performs Phase I ESAs to the scope defined by ASTM Standard E1527-05. Our project managers are Environmental Professionals and our Relationship Managers understand how to customize our due diligence products to clients’ needs.

What's Involved

Sometimes our clients are interested in limited due diligence products such as:

If you want to manage your environmental liability prior to leasing real estate, call us to discuss your options.

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Frequently Asked Questions

It involves a thorough investigation of the property’s history, current use, and surrounding area to identify any potential sources of contamination or environmental hazards. This includes reviewing historical records, conducting site inspections, and interviewing past and present property owners or occupants.

If environmental concerns are identified, further investigation may be warranted, such as a Phase II ESA, to assess the extent of contamination and potential risks. Depending on the findings, mitigation measures may be recommended.

There are several reasons why a tenant might need a Pre-Lease Phase I ESA Report:

Reduce Environmental Liability: Identifying potential contamination issues beforehand allows you to negotiate lease terms or walk away if the risks are too high.
Ensure a Safe Workplace: The report can uncover potential health hazards for employees working on the property.
Establish a Baseline: Creates a record of the property’s condition before your tenancy, protecting you from future claims for pre-existing contamination.

While it may not be legally required in all cases, it is often considered a best practice and may be required by lenders or insurance companies as part of due diligence processes.

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