TRANSWESTERN: Time for a Reality Check. Can DC Handle a Disaster?

Delta looks at the few buildings in DC that have shored up defenses in anticipation of a possible attack.

WASHINGTON, DC—Last week Transwestern unveiled its annual outlook for the region.   The report, called Trendlines, typically examines megatrends for the region and this year was no exception. One of the megatrends stood out in particular: The growing importance of commercial real estate to plan for both natural and man-made catastrophic events, or properties’ resilience against such events. Our first thought was…what? Oh yes. Washington DC, sadly, is a chief target for terrorist attacks. It is a testament to the federal and local government’s vigilance that DC residents are able to forget that on a day-to-day basis. It’s that habit of complacency that David Weisel, CEO of Delta Associates, zeros in on. “Washington DC is probably better prepared than most cities for a manmade threat,” he told GlobeSt.com. All that said, the city is at a heightened risk. Besides the all-too-human tendency to avoid thinking about catastrophes like terrorist attacks, building owners must fight against another tendency as well: the short-term term thinking of a short-term hold investor. A terrorist attack is a one in 50 year problem, Weisel said. That can be difficult for investors who are working off of ten-year hold periods. “A lot of the solutions to these problems are costly and don’t have immediate financial benefits,” Weisel says. “Owners are faced with a cost-benefit analysis that is not likely to pay off during the period they are holding the building.”

Delta Associates’ megatrends includes resilience against natural disasters

Resilient commercial real estate also refers to natural disasters and in this respect the Washington DC area is lucky. The Washington area is well positioned to withstand natural disasters, the report said, citing a recent study by Grosvenor, which examined the vulnerability and adaptability of cities in the US and globally. The study found that Washington was moderately at risk for future catastrophes, particularly flooding. It also found that Washington was among the most prepared cities in the world in terms of its ability to respond to hazards. At the same time, the industry is moving forward to address the issue of reliance in buildings. Delta Associates points to RELi, a resiliency standard created by the design firm Perkins + Will that is modeled on USGBC’s LEED sustainability standard. RELi, however, measures how effectively buildings are designed to respond to different types of hazards and events.