The threat of rising sea levels could prompt commercial property developers and owners to reduce their assets in vulnerable areas, according to at least one prominent investment manager.
Owners of rental properties and other commercial real estate assets in coastal areas that face increased flood risk would be wise to adjust their portfolios over time, Marc Singer, co-founder of investment advisory firm Singer Xenos told GlobeSt. Taking this into account would mean selling properties in areas such as South Florida and directing new investments to areas less likely to suffer damage from the impacts of climate change.
Climate change should be taken seriously, as scientific evidence mounts indicating that significant coastal flooding will impact the real estate industry this century, Singer noted.
That doesn’t mean an immediate large-scale sell-off. Rather, a more gradual reduction of vulnerable properties over the coming decades would be prudent.
Recent studies have shown that a quarter of Boston could be underwater by 2045, and catastrophic flooding in New York City may become more common over the next few decades, he said. One impact within a decade might be a change in the way FEMA’s National Flood Insurance Program is administered to more realistically assess flood risk, resulting in higher premiums.
Related Stories
Codes and Standards | Sep 12, 2017
Washington, D.C. is first LEED Platinum city in the world
All city government buildings are powered by renewables.
Codes and Standards | Sep 11, 2017
Natural solutions would be most effective flood resilience policies for Houston
New green infrastructure should be part of rebuild.
Codes and Standards | Sep 8, 2017
Los Angeles luxury high-rise is first U.S. apartment building to achieve WELL Multifamily certification
Hollywood Proper Residences have verified indoor air and water quality features.
Codes and Standards | Sep 7, 2017
More than half of Houston properties at high or moderate risk of flooding are not in FEMA flood zone
Properties outside of these zones are not required to carry flood insurance.
Codes and Standards | Sep 6, 2017
Seventy percent of contractors have trouble finding workers
AGC survey indicates that fewer companies may be able to bid on projects.
Codes and Standards | Sep 5, 2017
New CTBUH initiatives to investigate link between fire and façades
In wake of Grenfell tragedy, Council forms new workgroup.
Codes and Standards | Sep 1, 2017
U.S. markets with the largest hotel construction pipeline
New York has the largest hotel construction pipeline of any U.S. market.
Codes and Standards | Aug 30, 2017
Trump rescinds elevation requirements for federally funded buildings and infrastructure
Flood protection on subsidized housing, hospitals, and other public buildings rolled back.
Codes and Standards | Aug 30, 2017
Stormwater runoff mitigation pays off for some building owners
Rain gardens, green roofs, cisterns, and rainwater recycling add value.
Codes and Standards | Aug 28, 2017
Commercial properties address state carbon-reduction policies
EV charging stations, batteries, and microgrid technology are all part of effort to meet demand for cleaner power.