Climate change poses many problems for society as a whole, and for commercial real estate. Properties can face flooding or wildfires or heavy damage from winds. A building can be cut off from everything else. All the time while increasingly cut off new business lines in states that have been particularly hard hit by disasters.
At a time when insurance can't be counted on as the rescue of last resort, lenders must consider the risk they could take on. The Federal Reserve Bank of New York emphasized this point in a recent blog post.
The observation started with a previous post about potential inaccuracies in flood maps. It wasn't a nationally representative examination, but one still worth consideration because the issues aren't only restricted to one part of the country.
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