Climate Change and Commercial Real Estate: Evidence from Hurricane Sandy

Addoum, J. M., Eichholtz, P., Steiner, E., Yönder, E. (2024) | Asset Management, Risk Mitigation, Valuation

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This study explores how investors reassessed flood risk in commercial real estate following Hurricane Sandy. The study found that properties in New York exposed to flood hazards began trading at significant and long-lasting discounts. It is interesting to note that even in Boston, where the…