If there’s anything last year’s hurricane season revealed, it’s that storm frequency and severity can be devastating. Most properties in the paths of Hurricanes Harvey, Irma and Maria astoundingly were not prepared for the impacts of rain, wind, flooding and storm surge. The reason? Commercial property owners and investors were not adequately educated about their asserts’ vulnerability, or knowledgeable about the hurricane preparation available to reduce or eliminate their risk of economic loss.
According to Freddie Mac’s Chief Economist, Sean Becketti, “Without understanding the impact of climate change under sea level rise on each mortgaged coastal property, there cannot be a reasonable assessment of fair market value and the underlying loan security.”
Coastal Risk is confident that better information leads to informed risk management and action-oriented hurricane preparation to preserve market values of real estate assets. Our Flood and Climate Risk Assessment™ (FCRA), customized for any individual property, provides a comprehensive assessment of flood and climate risks – for properties located far inland as well as those in coastal areas.
These detailed reports enable each client to understand the flood risk of a property currently and in five-year increments over the next 30 years. In addition, Coastal Risk provides practical guidance about services and products to make real estate assets more resilient to climate risks related to flooding and storm surge. The insight from our reports enables property owners to make adaptations to their properties that can save huge amounts in costly recovery efforts in the future—preventing business interruptions and loss of fair market values.
Our analysis of a property also incorporates Heat Risk indicators and Cooling Degree Days – a metric for the incremental energy needed to cool buildings in future years as average temperatures continue to rise.
What about practical impact? In making investment decisions, it’s equally helpful in the due diligence process to be aware of each specific property’s risk and how to begin the hurricane preparation process. One of our clients, a commercial real estate investor, said because our Flood and Climate Risk Assessment ™ revealed low levels of flood risk in coming decades on a particular property, the company was confident in moving forward on a significant deal.
With a proven track record in helping commercial real estate clients – we’ve assisted over $1 billion in commercial property transactions in the past year – Coastal Risk contributes to ensuring that potential additions to portfolios are thoroughly screened before any purchases. To find out more about how Coastal Risk’s Flood and Climate Risk Assessment ™ can help you before your next commercial real estate transaction, visit www.floodscores.com.