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Phase I & II ESA – Due Diligence

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Know What You're Buying Before You Sign

Environmental risk is one of the most overlooked and most costly surprises in a commercial or industrial property transaction. A Phase I or Phase II Environmental Site Assessment gives you the information you need to make a confident, fully informed decision before you’re legally on the hook for someone else’s problem.

What Is a Phase I ESA?


A Phase I Environmental Site Assessment is a records-based review of a property’s history. We look at historical land use, aerial photographs, fire insurance plans, government records, and site visits to identify any areas of potential environmental concern, without touching the ground.

It’s the standard first step in commercial real estate due diligence, and it’s often required by lenders, lawyers, and insurers before a transaction closes. If no concerns are flagged, the Phase I may be all you need.

When Does a Phase II Come In?


If the Phase I identifies potential concerns, such as a former fuel station, industrial use, or underground storage tanks, a Phase II ESA follows up with actual soil and groundwater sampling to determine whether contamination is present and to what extent.

A Phase II gives you the data. From there, you can negotiate the purchase price, require remediation as a condition of sale, or walk away with confidence. Knowledge is leverage, and a Phase II puts it in your hands.

KDM Environmental is based in the Quinte Region. That means we have firsthand familiarity with local site histories, former industrial land uses, and regional environmental conditions that a Toronto or Kingston firm simply won’t have. That context can be the difference between an assessment that misses something and one that catches it early.

Local Knowledge That Improves Every Assessment

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Who Needs a Due Diligence ESA

Purchasers of commercial or industrial properties

Commercial real estate agents advising clients on acquisitions

Lenders requiring environmental clearance before financing

Business owners acquiring a new facility

Investors evaluating a property portfolio

Frequently Asked Questions About Phase I and Phase II Environmental Site Assessments

Don't Close Without Knowing What's There

Environmental due diligence is one step you can’t afford to skip, and one you can’t rush at the last minute. Contact KDM Environmental early in the process, and we’ll work within your timeline to get you the answers you need.

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