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 | Jan 5, 2021
EPA finalizes first major update to Lead and Copper rule
Will accelerate pace of lead service line replacement.
Codes and Standards | Jan 5, 2021
Flood risk for affordable housing expected to triple by 2050
Some communities will have 90% of their affordable housing at risk.
Codes and Standards | Jan 4, 2021
Ranks of remote workers expected to double in five years
Nearly 23% of employees will work from outside of offices.
Codes and Standards | Dec 28, 2020
CSI and ASTM standards can now be connected through a central location
CROSSWALK web service accesses standards specific to projects from feasibility to turnover.
Codes and Standards | Dec 28, 2020
Dept. of Energy offers Better Buildings Field Validation Results Hub
One-stop-shop for information associated with technology validations in buildings.
Codes and Standards | Dec 28, 2020
2021 Defense Authorization Act includes mass timber provision
Directs defense, agriculture secretaries to review potential for wood frame construction on defense building projects.
Codes and Standards | Dec 28, 2020
New York City proposal would require rainwater detention tanks for new development
Rule would apply to projects on lots sized 20,000 sf or larger.
Codes and Standards | Dec 17, 2020
Energy efficiency as a service gaining ground as financing approach for adopting innovations
Building owners can invest in new technology with no upfront cost.
Codes and Standards | Dec 16, 2020
Resources available to address Legionella threat
Buildings reopened after extended pandemic closure are at risk.
Codes and Standards | Dec 16, 2020
New Specifications for Concrete Construction reference manual released
Scope expanded to include shotcrete, internal curing, mineral fillers, and recycled concrete aggregates.