Hawaiʻi Island (Big Island) Phase I Environmental Site Assessment (ESA) for Commercial Real Estate
Environmental Due Diligence for Properties Shaped by Volcanic Activity and Agricultural Land Use
Hawaiʻi Island presents a fundamentally different environmental profile than the other major Hawaiian Islands. As the largest and youngest island in the chain, its land use patterns are shaped not only by agriculture and development, but also by ongoing volcanic activity. This combination creates unique considerations for commercial real estate and environmental due diligence.
A Phase I Environmental Site Assessment (ESA) on the Big Island often involves evaluating both historical land use and natural geologic conditions. While agricultural and industrial activity remain important, the presence of active volcanoes, lava flows, and large undeveloped areas introduces additional complexity that is not typically encountered on Oʻahu, Maui, or Kauaʻi.
Volcanic Formation and Ongoing Activity (Prehistoric–Present)
The island of Hawaiʻi is formed by five volcanoes, including Mauna Loa and Kīlauea, two of the most active volcanoes in the world. Kīlauea, in particular, has been in near-continuous eruption for much of the late 20th and early 21st centuries, including a major eruptive period from 1983 to 2018.
These eruptions have produced extensive lava flows that have reshaped large portions of the island, particularly in the Puna District. Entire communities and infrastructure have been impacted or buried by lava, creating areas where land use history may be interrupted or completely reset.
From an environmental perspective, volcanic activity does not typically create contamination in the same way as industrial use. However, it plays a critical role in determining land stability, site accessibility, and development risk. As a result, Phase I ESAs on the Big Island often consider both environmental conditions and geologic hazards.
Early Agriculture and Ranching (1800s–Early 1900s)
Following Western contact, Hawaiʻi Island developed an economy based on agriculture and ranching. One of the most significant early developments was the establishment of Parker Ranch in 1847, which became one of the largest cattle ranches in the United States.
In addition to ranching, sugar plantations expanded in regions such as Hilo and the Hamakua Coast during the late 19th century. These operations required mills, transportation systems, and irrigation infrastructure similar to those found on other islands.
Coffee cultivation also emerged as a major agricultural activity, particularly in the Kona region, where conditions proved ideal for production. Over time, macadamia nut farming and diversified agriculture further expanded across the island.
These agricultural activities often involved long-term land use, large parcels, and supporting infrastructure—all of which are relevant during environmental due diligence.
Sugar Industry Growth and Decline (Late 1800s–1990s)
Sugar production played a central role in Hawaiʻi Island’s economy through the late 19th and 20th centuries. Plantation operations were concentrated along the Hamakua Coast and near Hilo, where rainfall and soil conditions supported large-scale cultivation.
By the mid-20th century, sugar plantations were highly industrialized, incorporating mills, rail systems, and processing facilities. However, global competition and rising costs led to the gradual decline of the industry. The final sugar plantation on the island, operated by Hamakua Sugar Company, closed in 1994, marking the end of large-scale sugar production on Hawaiʻi Island.
Today, many former plantation lands have been repurposed for other agricultural uses or left undeveloped. However, their historical use remains a key factor in Phase I ESA evaluations.
Hilo and Kailua-Kona: Commercial and Industrial Centers
While much of the Big Island is rural, commercial and industrial activity is concentrated in a few key areas. Hilo, located on the eastern side of the island, serves as a major administrative and economic center. It has historically supported port operations, warehousing, and agricultural processing.
On the western side, Kailua-Kona has developed into a hub for tourism and commercial activity, with supporting infrastructure including retail, hospitality, and small-scale industrial uses.
These areas may present environmental considerations related to fuel storage, commercial operations, and historical industrial activity, making them more likely to require detailed environmental review.
Military Presence and Federal Land Use
Hawaiʻi Island also includes significant federal land holdings, most notably Pōhakuloa Training Area, established during World War II. This large training area has been used for military exercises for decades and represents a distinct category of land use.
While most commercial properties are not located within military zones, proximity to federal land can be relevant during environmental review, particularly in terms of historical land use and access restrictions.
Lava Zones, Rural Land, and Development Patterns
One of the most unique aspects of Hawaiʻi Island is the presence of designated lava hazard zones, which influence land use and development potential. Large portions of the island, particularly in Puna and Kaʻū, are classified as higher-risk areas due to potential volcanic activity.
In addition, many properties on the Big Island consist of large, rural parcels that may have limited infrastructure and incomplete historical records. This can make environmental due diligence more complex, requiring broader analysis of surrounding land use rather than relying solely on site-specific documentation.
Environmental Considerations Unique to Hawaiʻi Island
Environmental risk on the Big Island is shaped by a combination of natural and historical factors. Unlike more urbanized islands, where risk is often tied to redevelopment, Hawaiʻi Island requires consideration of both long-term agricultural use and geologic conditions.
Key considerations include the legacy of plantation agriculture, ranching operations, localized industrial activity, and volcanic hazards. These factors create a unique due diligence environment where both environmental history and natural conditions must be evaluated together.