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Yardi Matrix Analyzes Environmental Risk in Commercial Real Estate

Yardi Matrix Analyzes Environmental Risk in Commercial Real Estate

Natural disaster risk rankings for major metros are included in new report

SANTA BARBARA, Calif., July 15, 2021 – Environmental, social and governance (ESG) issues have become increasingly important to investors and owners of commercial real estate, according to industry research.

Weather-related disasters, changes in work practices spurred by the COVID-19 pandemic, and focus on equity and diversity have created an urgency for businesses to act on ESG criteria, states a new report from Yardi® Matrix. A BlackRock survey of 425 investors that control $25 trillion of assets found that 88% believe climate change is a risk and 75% plan to account for ESG risks in their portfolios.

The new Matrix report includes a risk ranking system that assesses major metros based on their potential for natural disasters including hurricanes, tropical storms, rising sea levels and wildfires. Investors can use the chart to quickly assess whether geographic risk is above average, below average or average.

“Whatever one makes of the science, property investors cannot ignore risks to the bottom line,” states the report. “Property damage caused by environmental events is increasing.”

More than 400 weather events caused $268 billion of damage globally in 2020, including a record $63 billion caused by severe weather events, according to insurance broker Aon. Find out what metros have the highest disaster risk.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single family rentals, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

About the author

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Jeff Adler

Jeffrey Adler is Vice President, of Yardi® Matrix, the data division of Yardi Systems.

Yardi® Matrix is a US multifamily, student, office, medical office/lab space, industrial, and self-storage asset information toolset for originating, underwriting, and asset managing commercial real estate investments, with over 800 clients worldwide. Yardi® Matrix provides investment strategy, market and institutional research reports leveraging the underlying property level detail of 135 markets, >92,000 multifamily properties and >18 MM units. Mr. Adler also leads Commercial Property Executive and Multi-Housing News, two digital media websites.

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