Not every commercial real estate transaction requires the cost and scope of a full Phase I Environmental Site Assessment. For properties where a preliminary understanding of environmental risk is needed, our Environmental Risk Review provides a practical and affordable alternative.

An Environmental Risk Review is a desktop-based environmental screening designed to identify potential environmental concerns associated with a property and its surrounding area. The review examines readily available historical and regulatory information to determine whether past or current activities may have created environmental risks that warrant additional investigation.

Our review may identify issues such as underground storage tanks, petroleum releases, hazardous-waste facilities, contaminated properties, historical industrial uses, landfills, dry cleaners, or other environmental conditions that could affect the property.

Just as importantly, the review can help identify properties that appear to present low environmental risk. When no significant concerns are identified in the available records, the report can provide valuable information to help owners, buyers, investors, and lenders determine whether additional environmental investigation is justified.

What Does an Environmental Risk Review Include?

The scope is tailored to the property but typically includes a review of:

• Federal, state, and local environmental regulatory databases

• Reported spills, releases, and contaminated properties

• Underground and aboveground storage-tank records

• Hazardous-waste generators and facilities

• Historical aerial photographs

• Historical topographic maps and other available historical sources

• Property tax and land-use information

• Environmental conditions on nearby properties that could potentially affect the subject property

• Available regulatory files for significant environmental listings

• Recommendations regarding whether additional environmental investigation should be considered

The example review, for instance, incorporated aerial photographs, property tax information, USGS topographic maps, EPA records, state environmental records, and information concerning petroleum releases and storage tanks on nearby properties.

Clear Conclusions and Practical Recommendations

Finding an environmental database listing does not necessarily mean a property has a significant environmental problem. Distance, regulatory status, contaminant type, cleanup history, groundwater conditions, and other factors must be considered.

Our environmental professional will evaluate the available information and explain what it means for the property.

The final report identifies significant findings, evaluates their potential relevance to the property, and provides a straightforward recommendation regarding appropriate next steps. Depending on the findings, we may recommend:

No additional environmental investigation when the available information indicates a low level of environmental risk;

Additional records or regulatory-file review when more information is needed to evaluate a particular concern; or

A Phase I Environmental Site Assessment or other environmental investigation when the screening identifies conditions that warrant more comprehensive evaluation.

When an Environmental Risk Review Makes Sense

An Environmental Risk Review can be particularly useful when:

• You want an initial environmental risk assessment before committing to more expensive due diligence.

• The transaction size does not justify the cost of a full Phase I ESA.

• You are evaluating numerous potential acquisitions and want to identify higher-risk properties before spending money on comprehensive studies.

• You already own a property and want to better understand its environmental history.

• You want to determine whether available records reveal a reason to perform additional environmental investigation.

• You are evaluating a property believed to have a relatively low-risk history and want an independent professional review of the available information.

Reduce Due-Diligence Costs Without Ignoring Environmental Risk

Environmental problems can be extremely expensive, but comprehensive environmental investigations may not be necessary for every property.

Our Environmental Risk Review provides a middle ground: an affordable professional evaluation of readily available environmental and historical information designed to identify warning signs early, distinguish meaningful concerns from routine database listings, and help you decide where additional due-diligence dollars should—or should not—be spent.

The goal is simple: identify potential problems before they become your problems..