Insurance, who needs it? Any CRE property if it wants financing. But disasters are making that costlier than ever before, as GlobeSt.com has reported.

Commercial property insurance premiums were up 20.4% in the first quarter of 2023 — the first over-20% jump since 2001. Many markets have seen double-digit premium jumps. Some policy renewals offer half the coverage for the same price as before. The lack of affordable options is putting needed levels of coverage out of the reach of many owners. And it's also putting a lot of potential power in the hands of lenders.

A Marcus & Millichap special report on natural disasters and insurance risk focused on how weather events can reshape the CRE investment landscape. "Hurricane Idalia was this year's 16th extreme weather event with more than $1 billion in property damages," the firm said. "The pace set so far in 2023 has already nearly matched the trailing three-year average of 20 events, which in itself is up from a mean of 12.8 in the 2010s."