Flood damage from climate change could cost the commercial real estate industry $16.9 billion a year by 2052, according to a study published by First Street Foundation.
The research group produced the report with engineering firm Arup. Both firms are based in New York.
“A total of 729,699 retail, office, and multiunit residential properties face risk of flood damage in the contiguous United States,” the study said.
“The annual costs to repair or replace damaged buildings could grow by roughly 25% from $13.5 billion in 2022 to over $16.9 billion by 2052 due to climate change.”
Florida, Pennsylvania, California, New York, Texas and Virginia will be among the worst to suffer next year, the report says.
The negative impact on local economies could hit $63.1 billion in 2052, up 27% from $49.9 billion in 2022.
“Flood damage to commercial buildings could result in 3.1 million days of lost business operation in 2022 due to repairs,” the study said. That could soar 29% to 4 million days by 2051.
“Damage to commercial buildings has both revenue and downstream consequences for metropolitan areas and states,” the report noted.
In other real estate news this month, Dana Anspach, president of Sensible Money, explained on TheStreet.com how financial advisers can incorporate income-producing real estate into a financial plan.
"Many rental real estate holdings are cash-flow positive, but tax-negative or neutral, she said in an interview with TheStreet.com’s Robert Powell. "And that is not an easy thing to model using most financial planning software packages.”