New Report Reveals States With The Most Hurricane-Resilient Properties

Propmodo Daily

Greetings!

A new report reveals the U.S. states where residential properties have the best resilience against hurricane risks. Plus, check out this week’s Propmodo Technology focus on Facilities Management with the support of our friends at R-Zero. And, be sure to join us tomorrow, July 30th, for a Propmodo Live webinar where we will explore the latest office occupancy trends.

Now let’s dig in!

New Report Reveals States With The Most Hurricane-Resilient Properties

As another Atlantic hurricane season heats up, updated building codes have taken on outsized importance in reducing property damage. The Insurance Institute for Business & Home Safety (IBHS) recently released the fifth edition of Rating the States, which evaluates residential building code adoption and enforcement in the 18 states along the hurricane coastline from Texas to Maine.

Building code adoption is crucial to a community’s resilience to extreme weather, and lenders and investors factor it into their underwriting decisions. Strong building codes are critical when identifying resilience metrics at a market level and beyond single assets.

Evidence suggests that improved resilience translates into better financial performance at the property level. IBHS research reveals strong building codes mitigate damage during storms and reduce mortgage delinquencies following damaging hurricanes.

IBHS’s report on Rating the States ranked Virginia and Florida in the top two. Both these states have ranked in the top two for building code enforcement and adoption for every issue of the report. The states that ranked in the bottom third included Texas, Mississippi, Delaware, and Alabama.

Louisiana was ranked as one of the two most improved states for resilience against hurricanes, mainly because of improved construction codes. The report notes Louisiana improved its ranking after making training mandatory for code officials and adopting the 2021 International Residential Code.

Hurricanes cause severe property damage and have led to skyrocketing property insurance rates. The Rating the States report focuses on residential properties, but there are takeaways for commercial building owners. States with high rankings focusing on residential property resilience likely do the same with commercial properties. Investors worried about climate risk will be using data from reports like Rating the States to understand where to put their investments without having to worry that it might get washed away.

Insider Insights

Reduced exposure
Regional bank First Foundation has been a concern for investors due to its high exposure to commercial real estate loans. In July they were able to get a cash infusion from Fortress Capital but that hasn’t made them any more bullish on CRE as they have just announced that they will be selling off part of their commercial loan portfolio in the coming quarters.

Massive timber
A proposal for a new development in Milwaukee, when completed, will be the largest mass timber building in the country and will sit next to the largest skyscraper in the state.

Propmodo Technology

The recent CrowdStrike incident and a malware attack on Ukraine's heating system highlight the dangers of single points of failure in technology, where one vulnerability can compromise entire systems. With over 46,000 industrial control devices worldwide using outdated protocols like Modbus, the risk is significant.

Check out this week’s Propmodo Technology focus on Facilities Management with the support of our friends at R-Zero.

What to Watch

Join us tomorrow, July 30th, for a Propmodo Live webinar where we will explore the latest office occupancy trends reshaping workplace performance and utilization. We'll delve into shifting demand patterns, highlight success stories from various sectors, and discuss the effects of hybrid work models on occupancy and operational strategies.

Headlines

July 26, 2024 | The National
How Detroit Recast Itself As a Centre of Tech Innovation

July 26, 2024 | MultifamilyDive
Apartment Sales Volume Finally Turns Positive as AIR-Blackstone Deal Closes

July 26, 2024 | Bisnow
One Of The Biggest U.S. Developers Is Done With The West Coast

Overheard

More Newsletters

Are You Enjoying This Newsletter?

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

• Read exclusive articles about a variety of topics, including Real Estate, Workplace, Buildings, and Development.

• Browse our collection of interactive Propmodo Research e-books.

• Sign up for upcoming Propmodo Live Webinars or watch past Propmodo Live videos on-demand.

• Dive into Propmodo Technology articles, podcasts, and short videos about the future of commercial real estate.

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.