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 | Aug 17, 2020
ASCE seeks comments on seismic standard
Pertains to design criteria for nuclear facilities.
Codes and Standards | Aug 13, 2020
COVID-19 reboot guide offers strategies for reopening K-12 schools
Looks at space considerations for reopening at different scales.
Codes and Standards | Aug 12, 2020
Document provides guidance for mass timber construction
Overview of Intl. Building Code requirements included.
Codes and Standards | Aug 11, 2020
Inefficient air conditioning is a key contributor to global warming
More efficient equipment and buildings could make a big difference.
Codes and Standards | Aug 10, 2020
Concrete Institute and Post-Tensioning Institutes expand partnership
Will collaborate on new structural post-tensioned concrete code requirements.
Codes and Standards | Aug 6, 2020
SpeedCore demonstrates excellent fire resistance without additional fire-protective coatings
New York City approves metal-concrete product for all five boroughs.
Codes and Standards | Aug 5, 2020
Designing, redeveloping communities for zero energy needed to address climate change
District heating and cooling systems boost efficiency.
Codes and Standards | Aug 4, 2020
Virginia is the first state to adopt COVID-19 worker safety rules
Include social distancing requirements, notifications when co-worker tests positive, timelines to return to work after recovery.
Codes and Standards | Aug 3, 2020
Report aids local governments on policy options, pathways to electrify new buildings
Document focuses on switching appliances and equipment away from natural gas, propane.
Codes and Standards | Jul 30, 2020
Institute for Market Transformation acquires Energy-Efficient Codes Coalition
Goal is to achieve net-zero construction by 2050.