This report focuses on trends in the environmental due diligence sector with a deep dive on US Phase I Environmental Site Assessment (ESA) Volume, showing LightBox CRE activity index was flat in Q3 2023 and U.S. Phase I ESA volume down YoY.
We saw the following trends this quarter:
- The LightBox CRE Activity Index declined slightly in Q3 to 85.5 after Q2’s modest increase—and is still well below early 2022 levels.
- The Index’s Environmental Due Diligence component fell to 84.7 in Q3 2023, notably below 99.5 one year ago, reflective of lower demand due to constrained lending and investment activity.
- Environmental consultants are preparing for slow growth in 2024 in response to Fed’s ‘higher for longer’ stance on interest rates. The LightBox CRE Activity Index is derived from environmental due diligence activity, appraisal RFP activity by commercial real estate lenders, and property listings data — tracked by proprietary LightBox platforms.
In this CRE Market Snapshot Q3 2023 report – Part 2, LightBox analysts examine deal-making market statistics taking a deep dive into environmental due diligence trends, including pricing, turnaround time, and metro performance. Read the full report with details on market trends here. Part 1 can be found here. Additionally, LightBox will launch Part 3 highlighting trends in the broker and investment sector with the Q4 2023 reports.