17 Sep How is Hurricane Florence Impacting Commercial Real Estate?
How is Hurricane Florence Impacting Commercial Real Estate?
Although Hurricane Florence has been downgraded to a tropical storm at this point, a significant amount of damage has been done and it is impacting both traditional real estate as well as commercial.
On Friday CoStar released a report which analyzed the properties located along the coast lines of North and South Carolina, which found that $33.5 billion dollars’ worth of commercial real estate could be in danger of the impact of Hurricane Florence. The report based this result on just property values, and does not take into consideration how much money will be lost during the disruption of business operations. It is projected that Florence could be more damaging that Hurricane Hugo that hit this area in 1989.
Since 2011 there have been 1,383 commercial-backed securities underwritten with a value of $20 billion, according to Morgan Stanley. Commercial properties are subject to loss of income in the aftermath of Hurricane Florence, whether that is brick and mortar, or loss of people to run their businesses. A large number of landlords unable to pay their loan debts could have a massive impact nationwide. Residential real estate will be impacted greatly with nearly 759,000 homes projected to be damaged by Florence. According to CoStar they are anticipating reconstruction costs to be over $170 billion.
For more than forty years, Knipp Contracting has been helping homeowners and investors like you maximize their property values, while creating a beautiful space that you can enjoy for years to come. Our experienced team members are standing by, ready to assist you today. We look forward to hearing from you soon!