Another avenue that real estate investors, developers, and brokers need to be aware of is how different elements of a real estate venture can be connected and bring an impact to a project. It could be positive but not always. Recent natural disasters are having a major impact on the insurance industry, which, in turn, is having an impact on everyone from consumers (homeowners and potential buyers) to multi-million dollar entities facing significant increases of insurance costs to operate currently owned or managed properties.
As the below linked article points out, there are solutions worth considering which could reduce the rising costs of insurance in locations such as Florida. Sustainable materials is one possibility. While some developers are on top of that trend, others have not seriously considered to this point. This is where research comes in, along with knowing to look at the overall 'picture' instead of just one aspect.
After all my years of research and marketing, I know there will be some people that look at the cost of sustainable materials specific to a project in the works and point out an added expense to the budget. They may see how it could make a deal more of a risk. However, I'm looking for people that would work with a trustworthy insurance broker to determine the potential impact on insurance rates for the project. The next step is judging the amount of annual insurance premium reduction against the initial added cost for sustainable materials.
Among my current clients is a company which manufactures and installs a variety of sustainable materials for commercial real estate developments, upgrades, and expansion around the country. Knowing what opportunities are available for your project and determining their potential economic impact in your favor could make the difference between hit or miss. All you have to do is ask me.
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