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
| Dec 15, 2011
Dayton, Ohio schools saving $2.6 million annually by building to LEED
On average, green schools save about $100,000 a year on operating costs, including energy and water savings.
| Dec 15, 2011
Building to LEED standards can pose new risks for construction workers
Workers on these projects suffer a 24% increase in falls to lower levels during roof work, which researchers attributed to the installation of solar panels, and a few other risks.
| Dec 15, 2011
NRDC charges Maine governor with weakening green wood requirement
The FSC program is administered through the Leadership in Energy and Environmental Design (LEED) and requires wood to be harvested in a sustainable way.
| Dec 15, 2011
Post-tornado, Tuscaloosa seeks to create walkable urban, retail areas
Block sizes initially were limited to a maximum perimeter of 1,750 feet, with no side of the block being longer than 500 feet.
| Dec 15, 2011
Allentown, Pa. city council asked to repeal union-friendly law
The mayor of Allentown, Pa. asked the City Council to repeal a year-old ordinance that forces contractors to hire union workers for large city projects funded with state and federal dollars.
| Dec 13, 2011
LEED-EB outpaces LEED for new construction
The U.S. Green Building Council's (USGBC's) LEED certifications for existing buildings standard is outpacing LEED for new buildings for the first time.
| Dec 13, 2011
Regulators charge pervasive abuse of construction workers in Connecticut
Federal and state regulators say they have uncovered what they call "widespread noncompliance" with minimum wage and overtime laws in Connecticut's construction industry.
| Dec 13, 2011
Philadelphia mayor signs order for project labor agreements
Philadelphia Mayor Michael Nutter signed an executive order establishing project labor agreements for major public works projects in Philadelphia.
| Dec 13, 2011
Improved code requirements for attic ventilation
The Roof Assembly Ventilation Coalition (RAVC) participated in the development of the code.
| Dec 12, 2011
LEED-EB Outpaces LEED for New Construction
The U.S. Green Building Council’s (USGBC’s) LEED certifications for existing buildings standard is outpacing LEED for new buildings for the first time.