In the world of commercial real estate – Timing. Is. EVERYTHING. Regardless if you’re closing on a property, securing financing, or planning development, Environmental Site Assessments often play a critical role in keeping the process on track. Given the importance of timelines, one of the most common questions clients ask is: “How long do Environmental Site Assessments (ESAs) take?”
The truth is, it depends. For one, ESAs are broken down into two sequential investigations. A Phase I ESA is relatively straightforward with predictable timelines, while a Phase II ESA (if required) tends to take longer due to the involvement of contractors, analytical testing, and other site-specific conditions. Let’s break it down.
Typical ESA Timelines
Phase I ESA: budget 3 – 4 Weeks
A Phase I ESA involves a deep dive into historical data, review of available property records, interviews of those who know the Site well, and an inspection of the site. This is a desktop study; primarily document- and observation-based, which means it can often be completed within two to three weeks. If you’re on a tight closing schedule, this phase is usually manageable – provided your consultant has access to the necessary data and access to the site.
Most if not all of our clients hope things stop here, and that no risks are identified. Unfortunately, this isn’t always the case. If a potentially contaminating activity is identified during the Phase I ESA, your consultant will recommend a Phase II ESA to confirm the presence or absence of contamination related to that potential risk.
Phase II ESA: budget 2 – 4 Months (Site-Dependent)
A Phase II ESA is more complex. This stage is intrusive, and requires not only your consultant, but a utility locator and sometimes a drilling contractor. In Ontario, public utility locates take at least 2 weeks to come in once they’ve been requested, these timelines can be significantly longer during busy construction seasons. Not to mention that a good driller is likely booking about 4 weeks out.
These contractors are important members of the team, facilitating safe underground investigation – both avoiding underground infrastructure, and assisting with the collection of soil and/or groundwater samples for analysis. Once we have the necessary samples in hand, it’s off to the lab for analysis, which takes at least a week with most accredited laboratories. Results can reveal whether contamination is present or not, and help shape what next steps for the site might be. The Phase II ESA report can come together relatively quickly after receipt of the results.
All that said, your typical Phase II ESA will likely take 2 – 4 months from authorization to report issue, with the potential for delays pending contractor availability and site conditions.
What Can Speed Things Up?
- Early planning: Engaging an environmental consultant as soon as the deal is in motion prevents last-minute delays.
- Accessible site records: Quick access to environmental records, permits, and historical data can shave off days.
- Clear site access: Coordinating with property owners and tenants to ensure smooth entry for inspections avoids rescheduling.
- Defined scope of work: Clarifying the goals of the assessment up front helps prevent wasted time on unnecessary testing.
- Budget for RUSHING: If you’re really in a bind for time, resources and sample results can be rushed, but for a fee.
What Can Slow Things Down?
- Complex property history: Industrial facilities or sites with multiple resources to review (for example multiple previous reports) often take longer to review.
- Contamination concerns: If red flags appear in Phase I ESA, expect a Phase II ESA recommendation. See above for the additional strain of timelines.
- Contractor availability: Good, skilled partners and subcontractors are in high demand. Sometimes external resources are strained, or hands are tied by the process (for example, public utility locates).
Why Timing Matters?
Knowing in advance how long an ESA takes helps you manage risk and avoid surprises. Lenders often require an ESA before funding, and buyers may need the results to negotiate deal terms. Building realistic timelines into your transaction strategy ensures fewer delays, smoother closings, and more informed decisions.
Final Takeaway
- Phase I ESA: Plan for 3 – 4 weeks
- Phase II ESA: Plan for 2 – 4 months depending on site conditions
If you’re heading into a property deal, the key is simple: involve your environmental consultant early, set clear expectations, and allow enough time in your schedule to accommodate the assessment process.