Sea level rise is impacting public lands and residential and commercial real estate. Just as residential real estate investors need to consider the threat of sea level rise flooding, commercial real estate buyers and owners need to keep on top of it, too.
A recent article (“What CRE Execs Need to Know About Sea Level Rise and the Law”) written by Anca Gagiuc and published by CommercialSearch.com — a multiple listing service for commercial real estate — takes a detailed look at what commercial real estate buyers and owners should consider when they’re deciding how to proceed in coastal communities. In the article, Gagiuc interviews Emily Lamond who works in the environmental department at the Cole Schotz law firm.
Lamond says that commercial developers are already responding to sea level rise by raising land elevation, buildings, roads and critical infrastructure. Renters, buyers and mortgage providers are also interested in buildings that can resists or withstand sea level rise flooding.
Other issues explored are who has liability if a property is flooded and damaged to the point that it is essentially totaled. Lamond says typically the owners are responsible for demolishing and removing damaged buildings. She recommends that owners review their insurance policies to see what’s covered in this situation and also prepare for the possibility of unexpected costs.
Lamond touches on several other points that commercial and residential real estate buyers and owners should consider when evaluating property located in coastal communities threatened by or currently experiencing sea level rise flooding. The entire interview is definitely worth a look.