---
title: Phase I & II for Leased Spaces
description: Entering into a lease, a tenant can inadvertently assume environmental liabilities. Environmental due diligence can mitigate environmental liabilities..
image: https://www.currenenvironmental.com/hubfs/caveat%20emptor.jpg
---

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# Hot Environmental Topics

## [Phase I & II for Leased Spaces](https://www.currenenvironmental.com/blog/phase-i-for-leased-spaces)

** May 14, 2024 8:38:00 AM / by [David C Sulock](https://www.currenenvironmental.com/blog/author/david-c-sulock)

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If you lease a commercial space, be concerned that you need a baseline of environmental conditions of the property, to avoid future liability.  Although your operations at the site may be innocuous, if contamination is found at the site after you vacate or as you are planning to vacate, the blame can be placed on you.  Think about it what data do you have that would prove otherwise and by data I mean testing.

 

![Phase I & II for Leased Spaces](https://www.currenenvironmental.com/hs-fs/hubfs/IMG_2097.jpg?width=558&height=418&name=IMG_2097.jpg)

 

This client called our office regarding a commercial space they were looking at leasing:

*I am a bit afraid of getting involved with leasing this space.  What is the implication for us as the users if a big environmental issue exists?  *

If you have not defined an environmental issue BEFORE you lease a space, you can be pulled into being responsible for the contamination.    Think of yourself as being guilty and having to prove your innocence.  The major big box stores and corporate tenants will do their own environmental investigation of a site before they occupy and yes, this investigation will include soil and groundwater testing.    Deep pocket companies do not want to be pulled into a cleanup that were not associated with and to do that you must baseline the environmental conditions prior to occupancy.

A Phase I and II is designed to establish a baseline of what potential contamination is on a site so that you as the purchaser or lessee do not get hit for a cleanup for something that you did not contribute to.  What if the owner did environmental testing after your lease was done and you moved out and found a significant impact on soil and groundwater?  What evidence would you have to prove that you did not cause that contamination?  A Phase I would have identified potential areas of concern, AOC’s, where contamination may be present.  The Phase II would have confirmed it, both of which would provide you liability protection if it was performed.  The Phase II/Site Investigation (SI) work collects samples to confirm if contamination exists.     Some property owners may or may not agree to have the work done, but most owners will allow you to environmentally baseline a property.  

Read your lease, many have clauses pulling a tenant into being responsible for contamination found on the site, and these clauses do not specify when it occurred or from what.  I have had banks occupy properties as branches and be pulled into cleanup that had no real connected responsivity.

## Expert Due Diligence Advice

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![real estate due diligence](https://www.currenenvironmental.com/hs-fs/hubfs/caveat%20emptor.jpg?width=304&height=303&name=caveat%20emptor.jpg)![Phase I & II for leased property](https://www.currenenvironmental.com/hs-fs/hubfs/Curren%20Sign-2.jpg?width=337&height=298&name=Curren%20Sign-2.jpg)

 

 

#### Written by [David C Sulock](https://www.currenenvironmental.com/blog/author/david-c-sulock)

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- [NJDEP oil tank removal grant (5)](https://www.currenenvironmental.com/blog/topic/njdep-oil-tank-removal-grant)
- [Phase II Costs (5)](https://www.currenenvironmental.com/blog/topic/phase-ii-costs)
- [Phase II GPR (5)](https://www.currenenvironmental.com/blog/topic/phase-ii-gpr)
- [Property Transaction Screens (5)](https://www.currenenvironmental.com/blog/topic/property-transaction-screens)
- [lead risk assessment (5)](https://www.currenenvironmental.com/blog/topic/lead-risk-assessment)
- [tank abandoned in place (5)](https://www.currenenvironmental.com/blog/topic/tank-abandoned-in-place)
- [LSRP Program (4)](https://www.currenenvironmental.com/blog/topic/lsrp-program)
- [LSRP in New Jersey (4)](https://www.currenenvironmental.com/blog/topic/lsrp-in-new-jersey)
- [NJDEP Unregulated heating Oil Tank program (4)](https://www.currenenvironmental.com/blog/topic/njdep-unregulated-heating-oil-tank-program)
- [gpr tank swep (4)](https://www.currenenvironmental.com/blog/topic/gpr-tank-swep)
- [lead paint (4)](https://www.currenenvironmental.com/blog/topic/lead-paint)
- [lead paint wipe sample (4)](https://www.currenenvironmental.com/blog/topic/lead-paint-wipe-sample)
- [lead visual inspection (4)](https://www.currenenvironmental.com/blog/topic/lead-visual-inspection)
- [mosquito (4)](https://www.currenenvironmental.com/blog/topic/mosquito)
- [mosquito management service (4)](https://www.currenenvironmental.com/blog/topic/mosquito-management-service)
- [mosquito removal (4)](https://www.currenenvironmental.com/blog/topic/mosquito-removal)
- [oil tank leak (4)](https://www.currenenvironmental.com/blog/topic/oil-tank-leak)
- [tank leaks (4)](https://www.currenenvironmental.com/blog/topic/tank-leaks)
- [tank sweep with gpr (4)](https://www.currenenvironmental.com/blog/topic/tank-sweep-with-gpr)
- [Environmental Site Assessment (3)](https://www.currenenvironmental.com/blog/topic/environmental-site-assessment)
- [Indoor Air Quality (3)](https://www.currenenvironmental.com/blog/topic/indoor-air-quality)
- [LSRP Deadline (3)](https://www.currenenvironmental.com/blog/topic/lsrp-deadline)
- [LSRP costs (3)](https://www.currenenvironmental.com/blog/topic/lsrp-costs)
- [LSRP in NJ (3)](https://www.currenenvironmental.com/blog/topic/lsrp-in-nj)
- [NJ HOTS (3)](https://www.currenenvironmental.com/blog/topic/nj-hots)
- [NJ LSRP Program (3)](https://www.currenenvironmental.com/blog/topic/nj-lsrp-program)
- [NJDEP LSRP (3)](https://www.currenenvironmental.com/blog/topic/njdep-lsrp)
- [New Jersey LSRP (3)](https://www.currenenvironmental.com/blog/topic/new-jersey-lsrp)
- [filled in place tank (3)](https://www.currenenvironmental.com/blog/topic/filled-in-place-tank)
- [foam filling oil tank (3)](https://www.currenenvironmental.com/blog/topic/foam-filling-oil-tank)
- [lead free designation (3)](https://www.currenenvironmental.com/blog/topic/lead-free-designation)
- [mosquito control (3)](https://www.currenenvironmental.com/blog/topic/mosquito-control)
- [oil tank grants (3)](https://www.currenenvironmental.com/blog/topic/oil-tank-grants)
- [pa tank removal (3)](https://www.currenenvironmental.com/blog/topic/pa-tank-removal)
- [tank grants (3)](https://www.currenenvironmental.com/blog/topic/tank-grants)
- [tank removal grants (3)](https://www.currenenvironmental.com/blog/topic/tank-removal-grants)
- [Delaware tank removal (2)](https://www.currenenvironmental.com/blog/topic/delaware-tank-removal)
- [EDA tank grants (2)](https://www.currenenvironmental.com/blog/topic/eda-tank-grants)
- [Finding an LSRP (2)](https://www.currenenvironmental.com/blog/topic/finding-an-lsrp)
- [Home inspection (2)](https://www.currenenvironmental.com/blog/topic/home-inspection)
- [Lead Inspection (2)](https://www.currenenvironmental.com/blog/topic/lead-inspection)
- [Lead paint hazards (2)](https://www.currenenvironmental.com/blog/topic/lead-paint-hazards)
- [NJDEP LSRP Program (2)](https://www.currenenvironmental.com/blog/topic/njdep-lsrp-program)
- [Preliminary Assessment (2)](https://www.currenenvironmental.com/blog/topic/preliminary-assessment)
- [Selling a house, Buying a house, Real Estate (2)](https://www.currenenvironmental.com/blog/topic/selling-a-house-buying-a-house-real-estate)
- [What does a Phase II cost? (2)](https://www.currenenvironmental.com/blog/topic/what-does-a-phase-ii-cost)
- [be greener (2)](https://www.currenenvironmental.com/blog/topic/be-greener)
- [black mold (2)](https://www.currenenvironmental.com/blog/topic/black-mold)
- [environmental inspections (2)](https://www.currenenvironmental.com/blog/topic/environmental-inspections)
- [foam tank filling (2)](https://www.currenenvironmental.com/blog/topic/foam-tank-filling)
- [free oil tank removal (2)](https://www.currenenvironmental.com/blog/topic/free-oil-tank-removal)
- [green practices (2)](https://www.currenenvironmental.com/blog/topic/green-practices)
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- [leaking tanks (2)](https://www.currenenvironmental.com/blog/topic/leaking-tanks)
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- [oil tank testing (2)](https://www.currenenvironmental.com/blog/topic/oil-tank-testing)
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- [Crawlspace tank (1)](https://www.currenenvironmental.com/blog/topic/crawlspace-tank)
- [Estate (1)](https://www.currenenvironmental.com/blog/topic/estate)
- [IAQ (1)](https://www.currenenvironmental.com/blog/topic/iaq)
- [Inherited Property (1)](https://www.currenenvironmental.com/blog/topic/inherited-property)
- [Invasive Mold Infections (IMI) (1)](https://www.currenenvironmental.com/blog/topic/invasive-mold-infections-imi)
- [Lead Paint Survey (1)](https://www.currenenvironmental.com/blog/topic/lead-paint-survey)
- [Lead testing (1)](https://www.currenenvironmental.com/blog/topic/lead-testing)
- [Metal Detector Limitations (1)](https://www.currenenvironmental.com/blog/topic/metal-detector-limitations)
- [Mold Evaluation (1)](https://www.currenenvironmental.com/blog/topic/mold-evaluation)
- [Mold Inspection (1)](https://www.currenenvironmental.com/blog/topic/mold-inspection)
- [NFA (1)](https://www.currenenvironmental.com/blog/topic/nfa)
- [NJDEP ISRA (1)](https://www.currenenvironmental.com/blog/topic/njdep-isra)
- [NJDEP oil tank grant change may 3 (1)](https://www.currenenvironmental.com/blog/topic/njdep-oil-tank-grant-change-may-3)
- [NJDEP tank grant discontinued (1)](https://www.currenenvironmental.com/blog/topic/njdep-tank-grant-discontinued)
- [NJDEP tank grants (1)](https://www.currenenvironmental.com/blog/topic/njdep-tank-grants)
- [NO Further Action (1)](https://www.currenenvironmental.com/blog/topic/no-further-action)
- [Septic Systems (1)](https://www.currenenvironmental.com/blog/topic/septic-systems)
- [Tank removal NJ (1)](https://www.currenenvironmental.com/blog/topic/tank-removal-nj)
- [abandoned oil tank (1)](https://www.currenenvironmental.com/blog/topic/abandoned-oil-tank)
- [antibodies (IgG/IgE) (1)](https://www.currenenvironmental.com/blog/topic/antibodies-igg-ige)
- [asbestos (1)](https://www.currenenvironmental.com/blog/topic/asbestos)
- [being grren (1)](https://www.currenenvironmental.com/blog/topic/being-grren)
- [best tank sweep (1)](https://www.currenenvironmental.com/blog/topic/best-tank-sweep)
- [buying a home with a tank (1)](https://www.currenenvironmental.com/blog/topic/buying-a-home-with-a-tank)
- [buying house with oil tank (1)](https://www.currenenvironmental.com/blog/topic/buying-house-with-oil-tank)
- [cheap green practices (1)](https://www.currenenvironmental.com/blog/topic/cheap-green-practices)
- [closed in place oil tank (1)](https://www.currenenvironmental.com/blog/topic/closed-in-place-oil-tank)
- [green tips (1)](https://www.currenenvironmental.com/blog/topic/green-tips)
- [healthy home tips (1)](https://www.currenenvironmental.com/blog/topic/healthy-home-tips)
- [home disclosure (1)](https://www.currenenvironmental.com/blog/topic/home-disclosure)
- [home maintenance (1)](https://www.currenenvironmental.com/blog/topic/home-maintenance)
- [invasive mold infections (1)](https://www.currenenvironmental.com/blog/topic/invasive-mold-infections)
- [lead paint testing (1)](https://www.currenenvironmental.com/blog/topic/lead-paint-testing)
- [mold regulations (1)](https://www.currenenvironmental.com/blog/topic/mold-regulations)
- [oil tank remediation (1)](https://www.currenenvironmental.com/blog/topic/oil-tank-remediation)
- [property purchase inspection (1)](https://www.currenenvironmental.com/blog/topic/property-purchase-inspection)
- [state mold regulations (1)](https://www.currenenvironmental.com/blog/topic/state-mold-regulations)
- [tank foam (1)](https://www.currenenvironmental.com/blog/topic/tank-foam)
- [tank removal PA (1)](https://www.currenenvironmental.com/blog/topic/tank-removal-pa)
- [tank testing (1)](https://www.currenenvironmental.com/blog/topic/tank-testing)
- [tanks weep (1)](https://www.currenenvironmental.com/blog/topic/tanks-weep)
- [underground storage tank detection (1)](https://www.currenenvironmental.com/blog/topic/underground-storage-tank-detection)

[see all](https://www.currenenvironmental.com/blog/phase-i-for-leased-spaces#)

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