Understanding Building Stability, in Addition to Scenario Loss Estimates, Can Provide a More Accurate Picture of Seismic Risk Exposure
By Jason Coray, PE, SE, Technical Director – Seismic Division with Partner Engineering and Science, Inc. | Published November 26, 2024 on GlobeSt.com
Lenders, investors, and insurers have become increasingly concerned with building resilience, including with seismic events. While many commercial real estate (CRE) professionals are familiar with Seismic Risk Assessment (SRA) reports, another metric, Building Stability, can impact underwriting decisions as well. With every damaging earthquake and new mandatory retrofit ordinance, policies are increasingly being updated to include Building Stability. Many financial institutions, particularly Fannie Mae and Freddie Mac lenders, will not finance properties that do not meet the term’s requirements. By understanding both criteria, CRE players can more accurately gauge their risk exposure in relation to seismic events.
In this Globe St. article, Jason Coray discusses building stability and how to assess the seismic risk for your commercial real estate (CRE) property or portfolio.
