Raising asset values by building resilience to extreme weather – Quinn Eddins (MSRED ’07)
WELCOME TO HURRICANE SEASON. The Atlantic hurricane season is barely four weeks old, but 2016 has already seen four named storms. Although the official season runs from June 1 to November 30, tropical cyclones can form at any time of the year; we began exceptionally early in 2016, with two ‘‘pre-season’’ storms: Hurricane Alex formed in January over the far eastern Atlantic, and Tropical Storm Bonnie produced heavy rains in South Carolina in late May. Thus far in June, we have had Colin and Danielle.
The start of the official season almost certainly marks an increase in the frequency and ferocity of storms – an appropriate time to consider the value of incorporating resilience to extreme weather into the design and management of commercial real estate assets.
Coastal development and expected changes in the global climate and sea levels portend an increase in weather-related risk over the coming decades. For property owners, increasing buildings’ resilience can reduce costs, drive revenue, and ultimately generate greater returns on investment.
- Properties built and operated with an emphasis on resilience provide marketing, sales and leasing advantages.
- Such projects can benefit from cheaper insurance, long-term maintenance savings, better financing options and relatively higher overall value.
- If resilient design is incorporated early in the planning stages of development, projects can be improved with little impact on building budgets.
- Although retrofitting existing structures for resilience can be costly, low-cost strategies are available.
- Developing a comprehensive disaster preparedness and recovery plan with your building manager is a cost-effective strategy for increasing a property’s resilience.
- To lower insurance costs and enhance marketing, be sure to inform insurance companies and leasing teams of any resilience strategies that are implemented.
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