Why would you need
Seismic retrofitting is done for a variety of reasons, including to ensure the safety and security of the building’s tenants and inventory.
MORE REASONS FOR A SEISMIC RETROFIT…
- Marketability – In today’s marketplace, retrofits are required by sophisticated buyers so, whether you pay now or later a retrofit is a necessity. A retrofit for your building gives you the potential for unlimited buyers, reduce liability and increased lender opportunities.
- Risk & Legal Liability- The overall risk and liability are reduced. Owners have the potential to be liable if it can be proven they were aware a seismic retrofit and/or structural work was needed but had no plan in place to correct the problem. No amount of insurance coverage will cover a successful litigator against negligence. A thorough seismic retrofit provides peace of mind and asset protection.
- Investor Benefit- Lenders who request a PML of less than 20% are usually satisfied when a thorough and professional seismic retrofit has been completed.
- Insurance– Earthquake coverage may be reduced. A lower coverage cap may reduce premiums and a seismic retrofit can be an insurance premium game changer.
- Tenant Retention- Tenants who consider the operation of the building critical to the survivability of their businesses feel more secure with a seismic retrofit and will remain in occupancy contracts for longer periods of time.
- Construction Costs- Annual cost increases are expected so, waiting on a seismic retrofit is likely to cost more in the long run. Last year alone, construction pricing increased by 5.07%. Material costs and a labor shortage was the main driver of the rising pricing, and they are likely to fuel another increase in costs this year.