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Understanding Phase I and Phase II Environmental Assessments in Commercial Development
May 29, 2026
Environmental risk assessment is a standard component of commercial and industrial property transactions across Canada. Land acquisition, redevelopment planning, financing, permitting, and infrastructure expansion often require a defined understanding of current and historical site conditions before material decisions are made.
A Phase I environmental assessment is used to identify potential environmental concerns associated with historical land use, current operations, adjacent properties, and available regulatory records. Where the Phase I ESA identifies areas of potential concern, a Phase II environmental assessment may be completed to evaluate subsurface conditions through targeted field investigation and laboratory analysis.
