Hurricane Milton’s Impact on Commercial Real Estate and Rising Insurance Costs

Simply Commercial Real Estate

Hurricane Milton has made landfall in Florida, threatening over $1 trillion in commercial real estate and potentially causing catastrophic financial losses. Meanwhile, the commercial real estate sector faces soaring insurance costs due to climate change, exacerbating existing challenges from post-pandemic vacancies and debt. Additionally, insights from Mark Carney highlight the risk of aging buildings becoming stranded assets as net-zero regulations take effect. This episode provides critical analysis on the intersection of natural disasters, insurance trends, and regulatory pressures in the commercial real estate market.
Sources:
https://www.businessinsider.com/hurricane-milton-crashing-into-trillion-worth-of-property-moodys-2024-10
https://nypost.com/2024/10/09/us-news/manhattan-da-opens-probe-into-adams-admins-leasing-of-commercial-properties-tied-to-possible-bribery-report/
https://www.myheraldreview.com/news/business/as-hurricanes-strike-insurance-costs-soar-for-commercial-real-estate/article_a2e96a12-8693-11ef-85a1-efb718d91d9d.html
https://www.theenergymix.com/carney-sees-old-drafty-commercial-buildings-becoming-stranded-assets-as-net-zero-pledges-trigger-regulations/
Outline:
(00:00:00) Introduction
(00:00:42) Hurricane Milton is headed right into $1.1 trillion worth of commercial real estate properties: Moody's
(00:03:11) Manhattan DA opens probe into Adams admin's leasing of commercial...
(00:05:13) As Hurricanes Strike, Insurance Costs Soar for Commercial Real Estate
(00:05:30) Carney Sees Old, Drafty Commercial Buildings Becoming Stranded Assets as Net-Zero Pledges Trigger Regulations