Insurance costs squeeze commercial real estate as climate risks rise

Landlords and developers face mounting insurance premiums due to climate-related disasters, putting extra strain on an already struggling commercial real estate market.

Emily Flitter reports for The New York Times.

In short:

Insurance premiums for commercial properties have surged, with rates up 50% in storm-prone areas, doubling in some places this year.
Landlords, already dealing with higher interest rates and operating expenses, find lenders unwilling to ease strict insurance requirements.
Delinquencies on commercial real estate loans have risen, but experts see the insurance issue as a significant challenge rather than a looming crisis.

Key quote:

"Insurance pricing has caused deals to come to a halt and has forced deals into foreclosure in some cases."

— Danielle Lombardo, the chair of the real estate, hospitality and leisure division at Willis Towers Watson

Why this matters:

Rising insurance costs reflect broader financial risks driven by climate change, potentially destabilizing real estate markets. Without relief, higher expenses could force more properties into foreclosure, affecting communities and the economy.

www.nytimes.com

Insurance costs squeeze commercial real estate as climate risks rise

Floods are sending far more plastic to the ocean than we thought

Planning for disaster? Consider Haida wisdom

European chemical giants plot to weaken EU’s flagship climate policy

As the Trump EPA prepares to revoke key legal finding on climate change, what happens next?

Their water was undrinkable. Oklahoma's oil regulators failed to help

Citing national security, Trump has abandoned fenceline monitoring at coke ovens

Water, power, and the future of conflict

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Pennsylvania health advocates say Trump’s first 100 days in office have caused “100 harms” to local communities

“They're terrorizing these scientists because they want to keep them silent.”

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.