Rebuilding After Harvey – CRE Considerations

Jane M. Alcantara

The devastating Hurricane Harvey floods impacting Houston, and surrounding coastal Texas cities, represent a 1,000-year storm event. The resulting property damage and catastrophic loss, estimated by JP Morgan at $10 billion to $20 billion dollars, will require a lengthy cleanup in the months and even years to come. As the storms wane, immediate priority and manpower will be dedicated towards providing shelter, basic health services, restoring drinking water and electricity (where possible), and ensuring the general safety of citizens through night time curfews and National Guard presence.

Even after flooded waters recede (or are removed), roads will be covered with mud slicks that will make accessibility near impossible before construction equipment removes them. Fallen trees and high line wires will present significant barricades on roadways until they are cleared. Eventually, however, property owners will turn thoughts to getting tenants resettled and businesses operational again to help people get their lives back to normal as quickly as possible.