How One Developer is Future Proofing Its Portfolio
Ari Rastegar is future-proofing his real estate portfolio by integrating climate-resilient technologies—like advanced HVAC systems and water purification—in response to rising environmental risks. He’s also shifting focus to growth markets like Texas, while avoiding high-risk areas such as Miami.
Originally Published in GlobeSt.
Published on: October 23, 2024
Future-proofing commercial real estate properties may never be more important than now. The recent hurricanes Helene and Milton wreaked havoc on the Southeast especially West Central Florida.
From Hurricane Helene alone, Moody's RMS Event Response expects private market insured losses to range between $8 billion and $14 billion. Jefferies equity analyst Yaron Kinar for Milton and other experts expect Milton to result in $175 billion in landful losses for Tampa, and $70 billion for the Fort Meyers region, according to a note posted by CNBC.
Florida is of course seen as a popular state to move to thanks to warmer temperatures and lower taxes. It's also considered a business-friendly place to operate. But the recent events can't be ignored and everybody must consider whether Florida is a viable place to live and operate. And it appears that's already happening, as a Redfin report this month found that nearly a third of US residents between the ages of 18 and 34 said they are reconsidering where they want to move in the future after the recent hurricanes hit Florida, and some Sunbelt areas.
"Two feet of water in your living room isn't fun. Losing power isn't fun," Ari Rastegar, founder and CEO of Rastegar Property Company, which has invested in properties across 13 states, with a focus on Austin, Dallas, and Phoenix, told GlobeSt.
