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.
June 06, 2025
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
- Zoning
- Floodplain
- Soil Conditions
- Property Use History
- Site Remediation


Canada residential unit sales by month, actual, 2019 and 2024-2026. Data through June 2026. Source:
Canada residential sales-to-new-listings ratio, actual, January 2025 to June 2026. Source:
Canada residential months of inventory, actual, January 2025 to June 2026. Source: Source:
Year-over-year change in residential average sale price for Canada, Ontario, British Columbia and Alberta, January 2022 to June 2026. Average price is shown here as a regional mix measure, not a substitute for HPI or local comparable sales. Source:
Year-over-year change in residential unit sales for Canada, Ontario, British Columbia and Alberta, January 2024 to June 2026. Source: 






15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)
Renderings of the tower proposed for 15284-15296 Fleetwood Drive in Surrey. (Flat Architecture, 1098261 BC Ltd.)

Goldberg Group 
10-storey apartment building currently occupying 525 Eglinton Avenue East/WND Associates
Rendering of 525 Eglinton Avenue East/Wallman Architects
The Mayfair West site and its surrounding context. (Grosvenor, Arcadis, Hariri Pontarini Architects)
Renderings of Mayfair West. (Grosvenor, Arcadis, Hariri Pontarini Architects)
