Michelle Matteson
Favorable Climate
(global private real estate funds, current performance as of Q2 2013)
Positive Trends
(change in total nonfarm private employment by selected industry; in thousands)
Building Up
(M-F/CRE construction loans held on bank balance sheets; $ in billions) For more on bank holdings and underwriting, see “Measuring Success” in the November 2013 issue of Commercial Property Executive.
Cutting Storm Losses
Insurance carriers are closely watching the effects of global climate change as they assess risk for commercial real estate properties. According to a widely circulated new projection by Risk Management Solutions, a risk modeling and consulting firm, the next several years may present a paradox. Storms on the North Atlantic are expected to increase in frequency; however, RMS expects fewer of them to make landfall. As a result, insured losses related to Atlantic storms are expected to decrease significantly during the next five years.
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