Assessing climate-related risk and resiliency
NAREIM Dialogues 2021 Fall issue
October 25, 2021
Climate risk assessments (also known as resiliency assessments) are gaining traction in the commercial real estate community.
Many providers rely on geographic data, such as national and local weather databases, flood maps and spaghetti models that combine AI with machine learning and other historic metrics to understand a property’s exposure to risks from climate change and natural disasters. Unfortunately, this generalized, regional type of assessment often paints an incomplete picture.
The reality of extreme weather events requires a proactive approach to quantifying and mitigating risk, with resilience strategies identified during due diligence and implemented upon acquisition. Dorit Ziv, Partner Energy, and Justin Lia and Gary Cohn, Partner Engineering and Science talk about risk factors and mitigation measures when dealing with climate risk.