Most conversations about climate resilience in commercial real estate development happen when designing new structures to withstand future storms or when repairing or retrofitting existing ones after disaster strikes. Far less attention is paid to the in-between stage: the active construction site.
In an interview with The Epicenter, Rozza of Ryan Companies explains what happens when a major storm hits mid-construction and why CRE leaders should give as much weight to their works in process as they do to projects on either end of the building spectrum.
Extreme weather events and a changing climate are reshaping long-term housing affordability across America. The result is a migration pattern that would have shocked demographers a decade ago: people are leaving the Sun Belt and heading to the Rust Belt.
Most conversations about climate resilience in commercial real estate development happen when designing new structures to withstand future storms or when repairing or retrofitting existing ones after disaster strikes. Far less attention is paid to the in-between stage: the active construction site.
The majority of climate resilience discussions in commercial real estate (CRE) development occur during two phases: when planning new buildings to endure future extreme weather events or when fixing and upgrading existing properties after disasters strike.
Much less focus is given to what happens during the intermediate phase: the active construction site, with its unfinished roofs, unsealed windows, and materials exposed to the elements.
This is the most vulnerable moment in the development pipeline, in part because "construction sites are highly choreographed events," says Joe Rozza, Chief Sustainability Officer at the real-estate developer Ryan Companies. Each trade arrives in precise sequence, timed to material availability and the completion of prior work. One hiccup can reverberate through the whole system.
In a recent interview with The Epicenter, Rozza explains what happens when a major storm hits mid-construction, how the industry can better prepare for natural disasters, and why CRE leaders should give as much weight to their works in process as they do to projects on either end of the building spectrum.
The Domino Effect of Construction Disruption
When Hurricane Ian hit Florida in September 2022, it wrecked two of Ryan Companies’ in-process senior living facilities. Wind-driven rain soaked drywall, mechanical systems, and interior finishes; work that had already passed inspection needed to be redone, throwing off the project timeline.
Schedule delays stretched to 70 days. Material pricing guarantees expired, and pre-ordered materials kept arriving with nowhere to go, adding storage costs to the construction tab and creating logistical headaches.
The final tally: One project incurred $3.5 million in insurance claims, with $1 million paid out of pocket; the second saw $1.6 million in insurance claims and $620,000 also paid out of pocket.
Those trends aren’t unique to Ryan Companies; weather-related delays now affect an estimated 45% of construction projects globally, translating to billions in added costs and lost revenue.
Resilience Strategies For Construction Sites
The Risk Mitigation Playbook for commercial real estate, created by a coalition including The Resiliency Company and Ryan Companies, offers practical strategies to improve resilience during this too-often overlooked construction phase.
"You might have slightly more upfront costs to manage the risk," Rozza notes. "But you've got to think about what you're saving on the back end."
Had these strategies existed in 2022, says Rozza, the outcomes in Florida could have looked very different.
Learn more about creating climate-safe construction sites in our full interview with Joe Rozza.
Read more about insurance on The Epicenter here.
Read more about resilient public infrastructure and government solutions on The Epicenter here.
Read more about resilient real estate on The Epicenter here.
7:1
At 2°C of warming, the benefits of resilience spending to defend against heat and extreme weather outweigh costs by seven to one.
Source: McKinsey Global Institute.
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The Epicenter helps decision makers understand climate risks and discover viable resilience solutions. The Epicenter is an affiliated publication of The Resiliency Company, a 501(c)3 nonprofit dedicated to inspiring and empowering humanity to adapt to the accelerating challenges of the next 100+ years.
In an interview with The Epicenter, Rozza of Ryan Companies explains what happens when a major storm hits mid-construction and why CRE leaders should give as much weight to their works in process as they do to projects on either end of the building spectrum.
Extreme weather events and a changing climate are reshaping long-term housing affordability across America. The result is a migration pattern that would have shocked demographers a decade ago: people are leaving the Sun Belt and heading to the Rust Belt.
As the climate crisis exposes broader swaths of the U.S. to severe weather, responsible future-proofing strategies must account not only for fortified development but also for comprehensive cleanup. Real resilience can't exist without effective remediation first.
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