Environmental commercial reports are a key part of any real estate transaction involving commercial property. Whether you're buying, selling, or financing, these reports determine whether a site is free from contamination and environmental hazards. Most lenders require a clean report before they’ll approve funding. Even cash buyers often insist on one for peace of mind.
If you’re in a deal and don’t have a plan for handling the environmental report, you could be facing delays or worse. That’s why understanding what these reports do, who prepares them, and where legal fits in can make or break your timeline.
Where Environmental Issues Typically Arise
The most common report is a Phase I Environmental Site Assessment. This report looks into the property's current condition and historical use. It checks for signs of contamination, nearby hazardous sites, or past use that could pose a risk, like gas stations, dry cleaners, or manufacturing facilities.
Environmental consultants follow national standards like ASTM E1527-21 and EPA guidance to prepare the report. If no concerns are found, the report is “clean.” If concerns are flagged, called Recognized Environmental Conditions (RECs), a Phase II with sampling and lab work may be required. The whole point is to avoid liability and make sure the property is safe for future use, financing, and resale.
How We Help You Address Environmental Issues
Environmental commercial reports are usually ordered by the buyer during the due diligence phase. If financing is involved, the lender may require it. The buyer hires a licensed consultant to inspect the property, review records, and deliver the report.
Sellers may also order a report in advance, especially if they suspect the property’s history could raise concerns. This can speed up negotiations and reduce surprises. Either way, the consultant—not the attorney—is responsible for conducting and interpreting the report.
At Kleiner Law, we don’t review or interpret these reports. That’s left to your consultant. Our job is to help you manage the contract timelines, make sure the reports are delivered on schedule, and confirm that nothing holds up your financing or closing.
Who We Work With
Our clients include real estate developers, private investors, portfolio managers, and commercial brokers. We’re often called in when a site’s history is uncertain, a lender has raised environmental questions, or a buyer or seller simply wants to tighten up the legal framework of a high-stakes deal.
Many of these clients are working with older sites—gas stations, warehouses, or light industrial buildings—or pursuing redevelopment opportunities that require a clean environmental bill of health. We step in early to ensure that the health check is not only understood but properly reflected in the legal documents.
Don’t Let the Report Be an Afterthought
Environmental issues in commercial real estate affect more than just the dirt under your building. They influence the value of the property, your ability to finance it, and your exposure to long-term cleanup obligations. If the right disclosures or legal protections aren’t in place, you could end up responsible for problems you didn’t create.
Too many deals get hung up because the environmental report wasn’t ordered early enough. This step should never be left to the last minute. Even for properties that seem low-risk, past use can raise unexpected concerns. Get the report done early, and get legal involved right away to make sure everything is documented correctly.
Timing matters. Coordination matters. And while environmental consultants lead the process, having a legal team that understands how these reports affect the deal is just as important.
Resolve the Risk Before You Sign
While we don’t analyze the content of environmental commercial reports, Kleiner Law helps manage the timing and flow of these documents within the deal. We confirm that the contract allows enough time to complete a Phase I and any follow-up assessments, if needed. If a delay occurs, we help adjust the closing schedule.
Our focus is making sure your real estate transaction doesn’t stall because of missed deadlines or document issues. We coordinate with your broker, lender, and consultant to ensure the deal moves forward once the environmental report is in hand.
Contact Us
Do you have an environmental concern tied to your commercial real estate deal? Let’s get in front of it.
We help buyers, sellers, and investors understand environmental findings, allocate risk through contract terms, and meet closing requirements without unnecessary friction. Whether you're preparing for due diligence or in the middle of it, we’ll help you move forward with clarity. Contact Kleiner Law to schedule a consultation. You’ll get answers, not delays.
Some of the CRE matters we have experience in include:
- Negotiation of and execution of purchase agreements
- Resolution of due diligence matters
- Escrow issues
- Title issues
- Section 1031 tax-deferred exchanges
In addition, we provide our clients with professional assistance on the tax implications and structuring of real estate deals, including acquisitions, taxable and 1031 tax-free exchanges, sales, and commercial leases.
Testimonials
Clifton Russo
Bryan Wisotsky
Dania Rodriguez
Valentina Tafurt
Juan POVINA
Peer Review
What is a Phase I Environmental Site Assessment (ESA), and why is it important?
A Phase I ESA is a standard due diligence report that evaluates a property’s environmental history and potential contamination risk. It’s typically required by lenders and can uncover issues like past industrial use, underground storage tanks, or neighboring contamination. It helps protect buyers from inheriting environmental liability and is often the first step in identifying risks.
