What is an Environmental Site Assessment and how does it affect real estate

Using and reusing land often means that the land itself has to undergo an evaluation. A special type of evaluation produces what is known as an ESA, or an Environmental Site Assessment. The report is put together after the site has been investigated. It is essentially a report on any possibilities of contamination that could be on the site. These contaminations could lead to certain liabilities and it is therefore important for real estate holdings to make sure that a report like this is carried out.

Brownfield Sites

There are a large number of sites that have undergone this report which can be classified as “brownfield” sites. These brownfield sites are essentially sites that were once used for industrial purposes. As a result, there is a possibility that toxic chemicals or other forms of contamination could be present. For anyone who is interested in reusing such a site, it is important to ensure that there is as little risk as possible.

What is Investigated?

While the site itself is of course going to be examined, physical improvements on the property will also be looked at. This means that the buildings will be examined to ensure that there are no traces of contamination or other forms of liability lying around. Investigation for the Phase I ESA does not normally involve the sampling of various materials such as the water, building materials or soil.

What Causes Such an Investigation?

There are a number of “triggers” that will cause an investigation of this type. An ESA will often be conducted after someone purchases the property. The person purchasing the property will not be someone who has previously held the title to the place and therefore this will cause them to want to do an evaluation and ensure that everything is running as it should be. If somebody applies to a public agency to change the use of the land, such as turning a factory site into a commercial site for the likes of retail outlets or restaurants, an evaluation like this is going to have to be carried out. There may also be the need to understand the ‘toxic’ history of the site to ensure that there is no risk of danger to the health of either the owner, the employer or anyone who is working there.

What Can an ESA Do With Regards to Value?

If an ESA brings up negative findings then this can end up causing the value to drop. If findings are more positive than the value of the property will either remain the same or, in some cases, it may go up. The increase in value will of course depend on a number of other factors that may help t make it all the more desirable.

Author Bio:

Ashley is a freelance writer and blogger. She writes on a wide number of different topics. These include travel, home, finance, technology and for places like Environment Data Resources.

 

Category: Business