When guiding clients through commercial real estate deals, you are expected to look out for their best interests. As part of these responsibilities, you should be able to assist with due diligence.
You also need to be knowledgeable about the expenses associated with due diligence, such as Phase II environmental site assessment costs. By familiarizing yourself with these expenses, you can save your clients money and minimize friction during transactions.
To help, we created this guide on Phase II ESAs and the associated costs. We also outline factors that impact your final price for the assessment. Let’s dive in.
How Much Does a Phase II Environmental Site Assessment Cost?
Phase II ESA costs can vary greatly. However, Phase II ESAs typically range from $6,000 to $20,000 per assessment. This range is a broad baseline that can be influenced by many factors.
The most significant factor that impacts costs is the findings of the Phase I ESA report.
A Phase I ESA is a cursory assessment. It is designed to uncover recognized environmental conditions (RECs). Phase II ESA costs will rise as more RECs are discovered. Conversely, if only a few RECs are found, Phase II ESA costs will be minimal.
Key Phase II ESA Cost Factors
As noted above, the findings of the Phase I ESA will have the biggest impact on the cost of your Phase II assessment. However, a few other factors will influence the total cost. These factors include the following.
RSB Environmental serves clients nationwide. We can provide a full suite of due diligence services anywhere in the lower 48 states. While we can gladly assist with all of your needs, location does impact costs.
If the subject property is located near our main office in Houston, we incur minimal travel expenses. Conversely, conducting assessments in remote locations may be more expensive.
2. Site Size
Naturally, larger sites require more time and resources to assess. As such, RSB Environmental may need to bring in more personnel to complete your ESA. Fortunately, size has a relatively minimal impact on the overall cost because Phase II ESA efforts focus on areas identified during the Phase I assessment.
3. Scope of the ESA
The scope of the ESA has much more impact on cost than the site size. While addressing all RECs during a Phase II ESA is important, the assessment scope should not be overly wide. If it is, the assessors will collect more samples, which means higher lab fees for analyzing the samples.
To help provide better value to clients, RSB Environmental strives to keep our ESA scope extremely focused. We use our wealth of experience to identify the most concerning RECs. From there, we will collect samples and examine concerns such as storage tanks.
4. Number of Samples Collected
Every sample is sent to a laboratory for testing. During testing, analysts will look for two main things:
- Types of contaminants present
- Concentration of contaminants
The mere presence of contaminants is usually not a concern. RSB Environmental is more concerned with the concentration of contaminants. If contaminant levels are above the established thresholds, the property might not be safe for use.
RSB Environmental will take enough samples to accurately assess your site. However, we limit our scope and sampling process to avoid unnecessary costs for our clients. We get results within your budget.
5. Requested Turnaround Times
RSB Environmental understands the importance of prompt turnarounds. That is why we offer expedited Phase II assessment services that are geared toward transactions with very tight timelines. However, most clients find it unnecessary to pay for expedited services because our turnaround times are already faster than the industry standard.
Most companies in our space complete a Phase II report in 4-6 weeks. However, we can complete the process in just 2-3 weeks. This expedited process means that you can move forward with your real estate deals and keep your clients happy.
Schedule a Consultation to Learn More
Need more detailed information about Phase II environmental site assessment costs? If so, the best way to learn more is to book a consultation with our expert team. We will gather critical data about the subject property, review the findings in the Phase I ESA (if already completed), and provide you with precise pricing for your Phase II ESA.
Reach out to us today to get started. We look forward to supporting your deal.