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Examining building resilience and earthquake risk

According to current standards, a building is deemed stable if it can carry its weight under the stress of earthquake shaking.

By Jason Coray, PE, SE | December 02, 2024 at 10:56 AM
(Photo: Nykonchuk Oleksii/Shutterstock)

Insurers, lenders and investors have become increasingly concerned with building resilience, including with seismic events. While many commercial real estate (CRE) professionals are familiar with Seismic Risk Assessment (SRA) reports, another metric, building stability, can impact underwriting decisions as well.

With every damaging earthquake and new mandatory retrofit ordinance, policies are increasingly being updated to include building stability. Many financial institutions, particularly Fannie Mae and Freddie Mac lenders, will not finance properties that do not meet the term’s requirements. By understanding both criteria, those with a financial stake in a property can more accurately gauge their risk exposure in relation to seismic events.

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