Listen: How climate change risk is showing up in real estate
"Support for climate cast comes from Bank of America financing, clean energy initiatives, and advancements in renewable energy and spurring innovation in and the growth of environmentally focused companies markets and jobs, Bank of America, NA, member FDIC. Climate change risk showing up in real estate. I'm MPR chief meteorologist Paul Hefner. This is climate cast. The concept is pretty simple. Rising seas higher storm surges and unprecedented, flooding adds up to more risk for trillions of dollars in real estate. So now big real estate investment firms are calculating climate risk on property portfolios. Ed, Walter is global CEO with urban land institute. I think they're looking at the full gamut of what you see in the news on a regular basis. So one, they're looking at the impact of rising seas to they're looking at the impact of extreme heat and other markets. And lastly, you're looking at the impact of rising, it's a major storm events. So how does or will climate change risk be priced into current and future real estate, the challenge with this issue is that you can see in the long run that changes are coming to a variety of markets and something will ultimately need to be done to protect the real estate in those markets. And so as they're trying to assess. Yes that you have to both examine, what is the anticipated risk within an anticipated timeframe. And then what are the measures that are going to be required to protect against that as a real estate investor? Those dollars alternately whether they show up and investments in the building or higher tax rates within the city, the impact of those expenses, will ultimately affect the value of the building. What's the biggest message you think people should know about climate risk going forward? I think it's hard to dispute that we aren't seeing an increase in sea levels, and an increase in storm events and an increase in extreme heat. And so without getting caught up in the politics of debating climate change. I think the reality is, is cities need to be thoughtful and building owners need to be thoughtful about how to protect themselves against those three threats and so being smart and proactive about developing solutions where you can enhancing protections where you can. And developing where you should is really the best protection for any city against any real estate owner against those types of issues, and Walter global CEO with the urban land institute. Thanks so much for your perspective today graduates. Great to have a chance to talk with you. Paul hello. My name is Julie Marquel. I'm from Saint Paul Minnesota, Mike, climate story is about summer spent with my family up at Leech lake Minnesota. The storm. We had been watching build in the skies across the lake had reached our shore, wildfire foot waves crashed onto the beach reaching up to the treeline smoothing, the sand with each departure, the air, smelled of rain, fish and lake water, dark, clouds and shades of gray and blue hanging low in the sky, I watched as my young sons and nephew raced up and down the beach screeching and delight as they jumped to avoid the NextWave. This is a place of family history. A rustic camp compound, my parents had created for our family. When I was very young, where he would spend a month every summer living off the grid tents were shelters meals, all cooked outdoors on a raised. Her rooms were carved out of the Greenwood's with trees and sky as our ceiling, so many amazing experiences campfires. Storytelling in songs star field skies Northern Lights from horizon to zenith long lazy days swimming reading exploring the woods building forts and sand castles, we were visited by FOX bears. Skunks raccoons and owls in a life list of birds. I assume that this was a world that as it was would also belong to my children and their children. That will not be the vegetation, will change the cold clear lake will warm climate change is a reality. I pass on to the next generation. I stay hopeful engaged and committed to imagining a better world. That's climate cast with thanks to climate generations talk climate institute. I'm NPR chief meteorologist Paul Hutton. Her."