A new CBRE commercial real estate report finds improving resilience to extreme weather - such as powerful Atlantic hurricanes that are now in season -- can reduce costs, drive revenue and ultimately generate greater returns on investment.
"Institutional buyers are attracted to resilient properties for their sustainability, operational efficiency and marketability," said Quinn Eddins, Director of Research and Analysis, Americas, CBRE. "Incorporating resilience into building design and management practices can lead to deeper bidding pools and, ultimately, higher prices per unit."
In 2016, meteorologists forecast a 35% chance of an above-normal hurricane season. Up to four storms may become "major" hurricanes, category 3 or higher, with winds over 110 mph. Storms like these can damage properties if they are not properly built to withstand extreme-weather events.
Increasingly, new buildings are being engineered to accommodate extreme weather. For example, the addition of wind-resistant glass can mitigate high-wind damage and the placement of a building's power center on an upper floor can prevent damage to building systems from flooding and storm surges.
CBRE identified hurricane preparedness practices that increase the likelihood that a building will remain operational when other facilities might go out of service. Using high-quality materials and construction techniques can decrease long-run operating and maintenance expenses, enhance financing options and gain more competitive insurance rates.