A new report from CBRE suggests that by 2050, U.S. losses from flood damage to commercial real estate are likely to average more than $1 billion per year. Additionally, owners of apartment buildings in low-lying coastal areas could collectively face average annual losses of more than $190 million. The report warns that besides the monetary damage cause, flooding events can cause profound and long-lasting disruption to metropolitan populations, economies, and social structures.
CBRE advises owners of real estate in high-risk areas to install emergency generators and sump pumps and to invest in supplemental flood insurance coverage. “The U.S. has a high overall value of assets in low-lying coastal areas, but we have minimal protective measures in place relative to other wealthy nations in Europe and Asia,” said Quinn Eddins, Director of Research and Analysis, CBRE. “One of the things this study makes evident is that as costly as it may be to build up our flood defense infrastructure, inaction will be far more costly. We also need to rethink land-use policies and building practices that encourage development in high-risk coastal areas.
