Why Landlords Need To Worry More About Extreme Weather

Building owners know all about sustainability by now. But Entuitive associate Anthony Mirvish tells us far fewer are focused on the resiliency of their assets—that is, the ability to withstand the impacts of climate change and extreme weather: flooding, high winds and, though not as relevant here, earthquakes. “Extremely financially punitive” damages can result to a building's envelope and structure, and Anthony warns insurers won’t view this simply as the cost of business. “Developers or owners have to demonstrate they were aware of the risk and took measures to address it in a performance-based way.”

Anthony’s engineering firm—which has worked on high-profile buildings like RBC Centre (above) and Bay Adelaide East (below)—hosted a resiliency-focused forum last month in Toronto. The big takeaway: previous generations may not have focused on this aspect of building performance, but as climate change leads to more extreme weather, “the time to think about it is now.” Owners and developers must be proactive in addressing building resiliency, says Anthony. “Simply relying on the building code, as was the case for most design last century, isn't enough.”

Commercial landlords are more receptive to the idea of building resiliency than, say, condo developers, notes Anthony. “They're holding onto buildings a long time, so life cycle issues are front and centre.” This has traditionally meant looking at building systems (mechanical, electrical) and gross operating costs. But resiliency also involves assessing an asset's value in terms of how occupants perceive it—key when considering the implications of getting hit by a one-in-50-year windstorm. If the tower sways excessively or loses windows, “is it going to be a building tenants will want to stay in?”