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April 16, 2019

A New Approach to Seismic Risk Analysis

By Partner ESI

US Resiliency Council Standard Institutes Consistency, Transparency

For CRE investors acquiring properties on the west coast, a seismic risk assessment is standard practice. In seismic zones three or four, the question is not whether a significant seismic event will occur, but when it will occur—so a clear understanding of your potential losses in such an event becomes a critical part of due diligence. However, due to industry wide inconsistencies in assessing and calculating earthquake risk, understanding your potential losses can be a tricky and sometimes costly undertaking.

Attempting to solve the PML inconsistency problem and further industry adoption of modern methods, a not-for-profit organization called the U.S. Resiliency Council (USRC) was formed in 2016 (among other things) with the goal of establishing consistency and transparency in seismic risk assessment rating systems and the PML process.

To read the entire article about seismic risk assessments and the implementation of the US Resiliency Council standard, click here.

About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.

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