National + Retail | September 14, 2018

Hurricane’s Path Threatens Billions in Commercial Properties

Hurricane Florence, a slow-moving Category 1 storm, hammered the Southeast and Mid-Atlantic coast, causing a mad scramble to prepare, including evacuations, flight cancellations, factory shut-downs, port diversions and supply-chain disruptions. The impact is expected to be widespread, including across the region’s commercial real estate holdings.

Research by Morningstar Credit Ratings, LLC identified 339 properties totaling $2.81 billion that fall within a 100-mile radius of where Hurricane Florence was projected to make landfall, which has now occurred. The study found that Freddie Mac-issued deals account for 32% of the exposure by balance.

Additionally, research by S&P Global Market Intelligence found that U.S. equity real estate investment trusts owned 6,005 properties, excluding single-family housing, land and timber assets, in the forecasted hurricane path.

Single-tenant retail REITs own the most properties in the storm’s projected path. According to S&P Global Market Intelligence, Realty Income Corp. owns 740 properties in the area, the most of any REIT, while VEREIT Inc. and National Retail Properties Inc. also own a significant amount of properties exposed to the storm, at 545 and 479, respectively.

American Homes 4 Rent owns the most single-family housing units across the two states, with 9,767 properties, representing 19.6% of the company’s total property count, notes S&P Global Market Intelligence.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.