Environmental Assessment

Explore environmental assessments in Canadian real estate — what they include, when they’re needed, and how they guide development and land use decisions.

Environmental Assessment



What is an Environmental Assessment?

An environmental assessment is a formal process used to evaluate the environmental impacts of a proposed real estate development or land use change.

Why Environmental Assessments Matter in Real Estate

In Canadian real estate, environmental assessments are often required for large developments, infrastructure projects, or when contamination is suspected.



Assessments include:
  • Phase I (historical use review)
  • Phase II (sampling/testing for contaminants)
  • Phase III (remediation planning if necessary)



These studies help ensure environmental safety, protect public health, and determine land suitability for intended use. They also influence zoning, permitting, and financing decisions.



Understanding environmental assessments is critical for developers, buyers, and lenders evaluating potential risk or liability.

Example of an Environmental Assessment in Action

Before purchasing an industrial site, the buyer commissions a Phase I environmental assessment to identify potential soil or groundwater contamination.

Key Takeaways

  • Required for many developments
  • Identifies contamination and risk
  • Conducted in three escalating phases
  • Impacts zoning and financing
  • Promotes safe, sustainable land use

Related Terms

Additional Terms

Budgeting

Budgeting in real estate refers to the process of forecasting and managing income and expenses associated with owning, operating, or developing a property.. more

Tenant Improvements

Tenant improvements refer to custom modifications or build-outs made to a leased space to suit the tenant’s operational needs, often negotiated as. more

Highest and Best Use

Highest and best use refers to the reasonably probable use of a property that results in the highest value, provided it is legally permissible,. more

Gross Lease

A gross lease is a commercial lease where the tenant pays a fixed rent, and the landlord covers most or all operating expenses such as property. more

Brownfield

A brownfield is a property that was previously used for industrial or commercial purposes and is now vacant or underused, often requiring. more

Record of Site Condition (RSC)

A Record of Site Condition (RSC) is a formal document filed with a provincial environmental authority certifying that a property meets required. more

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