The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
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NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS 8 NAREIM DISASTER PLANNING THROUGH PROACTIVE ASSET MANAGEMENT The Fukushima nuclear meltdown in Japan and Arkema chemical plant explosion in Texas are cases of extreme secondary post-disaster events, but evaluating critical mechanical and engineering systems is important for a variety of industries and property types. Are there any critical operations at or near ground surface or that face disruption with a loss of electricity or one foot of flooding? Storm surge and flooding can pose additional resiliency considerations for your properties that store hazardous materials. Are you meeting or up-to-date on a Spill Prevention Control and Countermeasures Plan that applies based on the gallons of storage capacity thresholds? It's wise for your spill prevention planning and secondary containment features to consider the anchorage and spill protection features necessary to handle high water events. Keeping your storage vessels intact and in-place can save you significantly in restoration and cleanup from tanks that break loose, rupture, or overflow. Property owners near dangerous industrial plants or flooding risks should assess whether they would be in immediate risk zones for exposure or damage and contact their insurance provider to make sure they are covered. Is your property pre-programmed to automatically or even manually adjust into an emergency operation mode? Proactively maintaining emergency generator systems (many of which can operate on solar energy) and upgrading them to handle sustained periods of operation following a natural disaster is one of the most important considerations. Utilities companies in Texas 10 and in Florida 11 both struggled weeks after their respective disaster events to restore electricity in full, disrupting everything from cellular service to basic retail (gas, groceries) and residential life. Does your planning consider safety concerns such as carbon monoxide exposure related to prolonged emergency or portable generator operations? A camera system designed to allow basic observation and assessment in times of need can be critical when the property is physically inaccessible or poses too great of a safety concern. Getting a pair of expert eyes or a video assessment of your property may not be a viable option. Drones cannot legally fly 12 when federal and local authorities ban private use without proper Federal Aviation Administration authorization while rescue operations are underway. Satellite imagery can be limited in resolution without clear skies. Damage assessment for structural or moisture related inspection services can be the best option from firms equipped and experienced in mobilizing resources to the area, but it's typically a few days or the next week until these services can be safely and reasonably executed. Finally, you need a contingency plan 13 for maintaining accessibility and operation of brick and mortar systems infrastructure. Enforce information technology security and cybervulnerability, which peaks after disaster events 14 , with a cybersecurity disaster plan 15 and training. POST-DISASTER RECOVERY PLANNING The heavy, multi-directional rains and storm surges of natural disasters present a multitude of resiliency-related concerns. Roofing system elements and roof penetrations need to be secure and properly sealed to handle heavy lateral rains, especially on pitched roofs. Building envelope and window systems on vulnerable sides of the building need proper fortification, thickness, and sealant to withstand moisture making a direct hit and intruding in areas typically safe from vertical rain events. Detailed surveys where foundation and site elevations are confirmed can be instrumental in flood plain exposure and defending flood insurance claims. 8 NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS