<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class="">Commercial Property Executive June 20, 2019</span></p><div style="margin: 0px; font-stretch: normal; line-height: normal; color: rgb(0, 0, 238); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(0, 0, 238);" class=""><span style="text-decoration: underline ; font-kerning: none" class=""><a href="https://www.cpexecutive.com/post/how-climate-change-is-affecting-real-estate-values/" class="">https://www.cpexecutive.com/post/how-climate-change-is-affecting-real-estate-values/</a></span></div><div style="margin: 0px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255); min-height: 17px;" class=""><span style="font-kerning: none" class=""><b class=""></b></span><br class=""></div><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">Excerpts</b></span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class="">To get a closer look at the relation between climate change and real estate, we talked to Turnkey Property Pro’s Principal Oliver Somoza about the issue. His real estate development company specializes in identifying, renovating and managing different types of properties.</span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">To what degree has the real estate industry acknowledged the relation between climate change and property values?</b></span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">Somoza:</b> The real estate industry has begun to <a href="https://www.cpexecutive.com/post/uli-heitman-climate-change-key-risk-factor-for-real-estate-investors/" class=""><span style="-webkit-font-kerning: none; color: rgb(189, 99, 100); -webkit-text-stroke-color: rgb(189, 99, 100);" class=""><b class="">acknowledge climate change</b></span></a> as </span><span style="font-kerning: none; background-color: #fffb00" class="">a real issue as it relates to property values,</span><span style="font-kerning: none" class=""> I’d say just in the past five years. Investors are becoming more aware of the devastating effects of flooding and hurricanes in tropical climates and are looking for solutions and the most suitable ways to implement them. However, climate change will be a serious threat to properties in the years to come. That’s why we need to act fast. Climate change is going to kill values for investors who are caught off guard, without a plan in place.</span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">Has the risk associated with climate change impacted renters’ and buyers’ interest in properties?</b></span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">Somoza:</b> Climate change has certainly <a href="https://www.cpexecutive.com/post/occupancy-down-rents-up-in-post-hurricane-houston/" class=""><span style="-webkit-font-kerning: none; color: rgb(189, 99, 100); -webkit-text-stroke-color: rgb(189, 99, 100);" class=""><b class="">affected buyers’ and renters’ decisions</b></span></a>. As an example, Lake Havasu City, Ariz., registered a temperature of 128 degrees last year, the highest temperature ever recorded in Arizona. Climate change is forcing temps to soar, making certain areas flat-out unlivable. In addition, I am also noticing buyers steer clear of beach houses that aren’t built significantly above water level.</span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">How will ROI be impacted by these hazards? What about taxes?</b></span></p><p style="margin: 0px 0px 19.2px; font-stretch: normal; line-height: normal; color: rgb(51, 51, 51); -webkit-text-stroke-width: initial; -webkit-text-stroke-color: rgb(51, 51, 51); background-color: rgb(255, 255, 255);" class=""><span style="font-kerning: none" class=""><b class="">Somoza:</b> ROI will be hit by a wave of <a href="https://www.cpexecutive.com/post/hurricane-harveys-insurance-impact/" class=""><span style="-webkit-font-kerning: none; color: rgb(189, 99, 100); -webkit-text-stroke-color: rgb(189, 99, 100);" class=""><b class="">increased insurance</b></span></a> and maintenance costs on damaged homes. Taxes will skyrocket. Local communities and the government will need to pay significantly more to address these problems.</span></p><div class=""><span style="font-kerning: none" class=""><br class=""></span></div><div class="">
<div style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); font-family: Verdana; font-size: 14px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; orphans: auto; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; widows: auto; word-spacing: 0px; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; text-decoration: none;"><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(34, 34, 34); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">*************************************</span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal;" class=""><span style="text-decoration: underline; -webkit-font-kerning: none; background-color: rgb(255, 255, 255);" class=""><a href="https://www.dw.com/en/domino-effect-could-heat-up-earth-by-5-degrees-celsius-despite-paris-climate-deal/a-44968248" class="">Domino effect could heat up Earth by 5 degrees Celsius <span style="-webkit-font-kerning: none;" class=""></span></a></span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(0, 105, 217);" class=""><span style="text-decoration: underline; -webkit-font-kerning: none; background-color: rgb(255, 255, 255);" class=""><a href="https://www.dw.com/en/domino-effect-could-heat-up-earth-by-5-degrees-celsius-despite-paris-climate-deal/a-44968248" class="">https://www.dw.com/en/domino-effect-could-heat-up-earth-by-5-degrees-celsius-despite-paris-climate-deal/a-44968248<span style="-webkit-font-kerning: none;" class=""></span></a></span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(14, 119, 68); min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(34, 34, 34);" class=""><span style="-webkit-font-kerning: none; background-color: rgb(255, 255, 255);" class="">Aug 6, 2018<span class="Apple-converted-space"> </span><b class="">...</b><span class="Apple-converted-space"> </span>Even if the Paris agreement is successfully implemented, the planet could still heat up by 5 degrees Celsius, scientists warn.</span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(62, 62, 62); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">The lead authors say:</span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(62, 62, 62); min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(62, 62, 62); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">“Our study suggests that human-induced global warming of 2 degrees Celsius may trigger other Earth system processes, often called 'feedbacks,' that can drive further warming — even if we stop emitting greenhouse gases.” </span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(136, 136, 136); min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(62, 62, 62); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">And:</span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(62, 62, 62); background-color: rgb(255, 255, 255);" class=""><span style="-webkit-font-kerning: none;" class="">“These tipping elements can potentially act like a row of dominos. Once one is pushed over, it pushes Earth toward another. It may be very difficult or impossible to stop the whole row of dominoes from tumbling over.” </span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; min-height: 15px;" class=""><span style="-webkit-font-kerning: none;" class=""></span><br class=""></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal;" class=""><span style="-webkit-font-kerning: none;" class="">The above referenced PNAS article:</span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal;" class=""><span style="-webkit-font-kerning: none;" class="">Steffen,<span class="Apple-converted-space"> </span></span><span style="-webkit-font-kerning: none; color: rgb(62, 62, 62); background-color: rgb(255, 255, 255);" class="">Rockström</span><span style="-webkit-font-kerning: none;" class=""><span class="Apple-converted-space"> </span>et al. Trajectories of the Earth System in the Anthropocene. PNAS August 2018.<span class="Apple-converted-space"> </span><b class="">[Open access]</b></span></div><div style="margin: 0px; font-stretch: normal; font-size: 12px; line-height: normal; color: rgb(0, 105, 217);" class=""><span style="text-decoration: underline; -webkit-font-kerning: none;" class=""><a href="http://www.pnas.org/content/early/2018/07/31/1810141115" class="">http://www.pnas.org/content/early2018/07/31/1810141115</a></span></div></div>
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