Environmental due diligence has changed dramatically in recent years, and one of the biggest drivers is the rise of PFAS and other emerging contaminants. Once overlooked, PFAS is now one of the most scrutinized environmental risks in real estate transactions, redevelopment projects, and Phase 1 Environmental Site Assessments (ESAs).

In 2026, lenders, insurers, regulators, and buyers are paying close attention to PFAS risk indicators — even when contamination has not been confirmed. Understanding PFAS and other emerging contaminants is essential for anyone purchasing, refinancing, or redeveloping commercial or industrial property.

This guide explains what PFAS is, why it matters, how it affects property value and redevelopment, and what steps property owners should take before closing a deal.

What Are PFAS?

PFAS (per- and polyfluoroalkyl substances) are a group of synthetic chemicals used since the 1940s in:

• Firefighting foam
• Non-stick coatings
• Waterproofing treatments
• Industrial processes
• Food packaging
• Metal plating
• Textile treatments

PFAS are often called “forever chemicals” because they do not break down easily and can persist in soil and groundwater for decades.

Why PFAS Matters in Real Estate Transactions

PFAS has become a major concern for property owners because:

• Regulations are tightening nationwide
• Cleanup costs can be extremely high
• Lenders are adding PFAS screening to Phase 1 ESAs
• Insurance carriers are limiting coverage
• Redevelopment projects may require additional investigation
• PFAS contamination can affect property value and marketability

Even if PFAS is not sampled during a Phase 1 ESA, the presence of PFAS risk indicators can trigger additional investigation.

PFAS Risk Indicators Lenders Watch for in 2026

Lenders and environmental professionals look for specific clues that PFAS may be present.

1. Historical Industrial Use

Properties with past operations involving:

• Metal plating
• Manufacturing
• Chemical processing
• Textile treatment
• Electronics production

These industries frequently used PFAS-containing materials.

2. Firefighting Foam Use

PFAS is a major component of AFFF (aqueous film-forming foam).

Risk indicators include:

• Fire training areas
• Past fire incidents
• Storage of firefighting foam
• Industrial fire suppression systems

3. Proximity to Airports or Military Sites

Airports and military bases historically used large quantities of PFAS-containing foam.

4. Landfills or Waste Disposal Sites

PFAS can migrate from waste streams into soil and groundwater.

5. Food Processing or Packaging Facilities

PFAS was widely used in grease-resistant packaging and certain processing equipment.

6. Adjacent Contaminated Properties

PFAS can migrate offsite through groundwater or surface water.

How PFAS Affects Phase 1 ESAs in 2026

PFAS is now considered a potential Recognized Environmental Condition (REC) when risk indicators are present.

Phase 1 ESA impacts include:

• Additional historical research
• More scrutiny of past industrial operations
• Review of fire department records
• Evaluation of waste streams
• Consideration of off-site migration
• Recommendations for Phase 2 sampling

Even if PFAS is not sampled, lenders may require additional investigation before approving financing.

Other Emerging Contaminants to Watch

PFAS is not the only emerging contaminant affecting real estate in 2026.

1. 1,4-Dioxane

Found in solvents, adhesives, and industrial processes. Highly mobile in groundwater.

2. Chlorinated Solvents

Used in dry cleaning, degreasing, and manufacturing. Major vapor intrusion concern.

3. Vapor Intrusion Compounds

Including PCE, TCE, benzene, and other VOCs.

4. Microplastics

Increasingly scrutinized in redevelopment projects near waterways.

5. Pharmaceuticals and Personal Care Products

Found near wastewater treatment plants and biosolid application sites.

These contaminants may trigger additional investigation depending on property history.

How PFAS and Emerging Contaminants Affect Property Value

1. Cleanup Costs

PFAS remediation can be extremely expensive due to:

• Specialized treatment methods
• Long-term monitoring
• Disposal restrictions

2. Redevelopment Delays

PFAS investigations can delay construction, permitting, and financing.

3. Reduced Marketability

Buyers may avoid properties with PFAS concerns.

4. Insurance Limitations

Many insurers exclude PFAS-related claims.

5. Regulatory Requirements

States are adopting stricter PFAS standards, increasing compliance obligations.

How to Evaluate PFAS Risk Before Buying or Redeveloping Property

1. Conduct a PFAS Screening During Phase 1 ESA

Evaluate:

• Historical operations
• Firefighting foam use
• Waste streams
• Adjacent property risks
• Regulatory records

2. Review Fire Department and Industrial Records

Fire suppression systems and historical incidents can indicate PFAS use.

3. Evaluate Waste Management Practices

Past disposal methods may reveal PFAS risk.

4. Consider Phase 2 Sampling if Needed

Sampling may be recommended if:

• PFAS risk indicators are present
• Groundwater is shallow
• Past industrial use is unclear
• Redevelopment involves soil disturbance

5. Consult with an Environmental Professional

PFAS evaluation requires specialized expertise.

Caltha LLP provides PFAS screening, Phase 1 ESA support, and Phase 2 sampling guidance.

What Property Owners Should Do If PFAS Is Suspected

1. Gather Historical Records

Identify past operations, spills, or fire incidents.

2. Conduct Targeted Sampling

Focus on areas with highest risk.

3. Evaluate Redevelopment Plans

Determine whether soil disturbance or groundwater contact will occur.

4. Consult Regulators Early

Some states require PFAS reporting or cleanup.

5. Develop a Risk Management Strategy

Options include:

• Engineering controls
• Institutional controls
• Remediation
• Monitoring
• Redevelopment planning

Conclusion

PFAS and emerging contaminants have become major considerations in real estate transactions and redevelopment projects. In 2026, property owners, buyers, and lenders must evaluate PFAS risk carefully — even when contamination is not confirmed. Understanding PFAS indicators, regulatory expectations, and potential impacts on property value is essential for making informed decisions.

A proactive approach to PFAS evaluation protects your investment, reduces risk, and ensures smoother transactions.

Next Step

If you need PFAS screening, Phase 1 ESA support, or guidance on emerging contaminants before buying or redeveloping property, Caltha LLP can help. Contact us to schedule an environmental review.