Hurricane Harvey’s Impact on Commercial Real Estate Emerging
The full impact of Hurricane Harvey will not be known for months, but real estate analysts are beginning to speculate about potential damage costs and recovery options. According to the report “Hurricane Harvey Exposure” from Trepp, roughly 2,900 commercial properties with about $29.6 billion worth of debt that was sold as commercial mortgage-backed securities are located in the storm area. Houston’s office market was experiencing high vacancy rates before Harvey and landlords may face difficulty showing, renovating or releasing office space.
“Houston Flooding and the Potential Impact on Commercial Real Estate,” an initial assessment of the potential impact of the epic storm on the Houston commercial real estate market by CoStar Group, reveals “27% of the market's gross leasable area, representing $55 billion in property value, is located in flood zones and may have potentially suffered damage.”