It doesn’t take long watching news footage before it becomes clear that commercial properties can be up against some serious threats. These come from not only environmental factors but human-made ones as well.
There are a few things that managers and investors can avail themselves of to help protect their properties. These include insurance as well as safety glass windows. What follows is a list of seven critical areas where commercial real estate could be facing real threats.
One of the most transformative commercial development trends in recent years has been the conversion of industrial sites into mixed-use retail. The examples of this phenomenon are numerous. Unfortunately, these benefits can face many environmental risks, such as groundwater contamination and other problems. These are difficult to remediate and can cause problems for many years to come.
It seems like disputes can arise at almost any time and over practically anything, from property damages to illegal use. These result from holes cut in walls, unauthorized work done on HVAC systems, and prolonged exposure to moisture and other elements.
One would have to live under a rock not to be aware of the impact online shopping has had on brick-and-mortar retail, directly impacting commercial properties. Malls that were once thriving and filled with shoppers now stand empty. Making matters worse, vacant malls invite vandalism, authorized entries, and other criminal activities. Things such as safety glass windows help prevent some of these problems, but they are only a start.
Rising water levels are an increasing problem in many areas. Even though commercial property owners are working to prevent these problems, there is still much to be done. Many experts believe that the storms recently experienced are mild compared to what lies in store in the future. The warming temperatures our planet is experiencing from global warming are pushing sea levels higher and higher and causing intense storms with ever greater runoff to deal with.
Hail is far from being a problem only in rural areas where there is a preponderance of agriculture and unprotected cars that can be damaged. Hail also proses serious problems to commercial structures, particularly roofs that are fully exposed to these issues.
From accidents to the recent rash of civil unrest, fire is as great a threat to commercial structures as it has ever been. Even technology created to help business has become something of a hazard from things like lithium batteries and overheated data equipment. All of these and more can cause serious fire hazards.
The liabilities involved in commercial property transactions are a huge risk that carries high premiums and may be candidates for careful risk transfer. A contractor’s liens and legal actions from current or prior tenants are some of the many liabilities that should be vetted to determine whether a commercial property is a transaction worth being involved in. It’s an unfortunate fact of life that liability in commercial properties is present. It’s part of the business world. Fortunately, there are things that owners, managers, and other shareholders can do to minimize and deal with these issues. It’s not always an expensive proposition. It just demands that the appropriate level of diligence be given to deal with threats effectively.
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