Institutional Real Estate, Inc.

NAREIM Dialogues Fall 2017

The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products

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Page 7 of 47

NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS 6 FOR INCREASING VALUE OF COMMERCIAL REAL ESTATE ASSETS RESILIENCY PRINCIPLES E VEN BEFORE Hurricanes Harvey and Irma, which together caused $290 Billion 1 in damage, fifteen of the 30 costliest hurricanes in history all occurred between 2004 to 2013. Although coastal commercial real estate properties in the US face the highest vulnerabilities to hurricanes, flooding from sea level rise, and seismic zone activity, it has not slowed down rates of building 2 or population growth. Even though they only account for 10% of the nation's land area, direct coastlines contain 3 about 40% of the population. From an equity perspective, the top issues with damage from natural disasters are an inability to generate return on investment from properties 4 (loss of cash flow), and catastrophic losses 5 from destroyed buildings. So critical is resiliency to the future of commercial real estate investment, that investors are looking to resiliency metrics 6 in addition to yields and interest rates for long-term asset planning. For current investors and property owners, true holistic resiliency is comprised of three primary considerations: building reinforcements and/or avoiding vulnerable buildings, advanced preparedness for proactive asset management, and post-disaster recovery planning. 6 NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS Bob Geiger, Principal, National Client Manager, Partner Engineering and Science, Inc.

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