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Are seismic (earthquake) retrofits a good business investment?

There are several benefits to seismic retrofits including the following:

  • Mitigate Risk and Liability
  • Increase Property Value
  • Avoid Construction Cost Inflation
  • Insurance Reductions
  • Increase Marketability
  • Resiliency and Tenant Retention


Therefore, the obvious answer is absolutely it is a good idea to invest in your assets. Studies show that seismic retrofits are a good investment – averting damage or total destruction of a property at a minimal cost.

Caltech researchers determined that for every dollar spent in retrofitting soft-story structures, property owners could expect to save up to $7 – not counting loss to contents, alternate living expenses, or deaths and injuries, all of which would have significantly increased the cost-to-benefit ratios.

Seismic retrofits also provide an important value-added enhancement to buildings. A retrofitted structure is worth more because its timespan has been extended, based on its ability to withstand a major earthquake or seismic activity. In addition, the marketability is enhanced with retrofitted structures increasing the market value.  They are more sought after by tenants because they are safer and better able to withstand the force of our region’s frequent quakes. If you have any assets built before 1997 on the west coast it would be a great business investment to perform seismic retrofits and prepare for the future.

The Federal Emergency Management Agency’s Geographic Information System technology estimates physical, economic, and social impacts of disasters such as earthquakes. This nationally applied standard, called HAZUS, has put Los Angeles/Orange County at the top of this list for annualized earthquake damage from an earthquake:

  • Los Angeles/Orange County
  • San Francisco
  • Inland Empire
  • San Jose
  • Seattle

“The benefit/cost analysis suggests that a retrofit is strongly justified economically, even without including the value of life,” FEMA determined. For more information visit FEMA,

If you’re interested in protecting and investing in your assets, contact us

Posted Under: seismic retrofitting