Nearly half of building operators in hurricane-prone areas spent $7,500 annually per property to prepare, a survey by Site Technologies found.

With hurricanes and other major storms occurring more frequently, evaluating the risk to their facilities is becoming essential for building operators, according to a white paper by aerial imaging company Site Technologies.

An evaluation can require a significant expenditure in time and money, but it’s more costly not to be prepared, said the company, which partnered with market research firm Censuswide to survey facility managers in hurricane-prone areas.

Hurricanes inflict billions of dollars in damage annually to commercial property across the U.S., according to data from the National Oceanic and Atmospheric Administration. All but one of the most costly natural disasters in the past 35 years occurred in the last two decades, Site Technologies CEO Austin Rabine said in the white paper.

These costs have resulted in significant increases to insurance premiums, according to research from insurance brokers Marsh McLennan. Premiums on commercial properties rose 11% on average in 2023, but in storm-prone areas, including the Gulf Coast and Florida, premiums rose 50%. “For some property owners, insurance has become virtually unobtainable,” Rabine said.

Although the majority of survey respondents managed fewer than three properties, the time and money required to prepare for hurricane season was notable, the survey showed. A fifth of building operators are spending between $15,000 and $20,000 per year in hurricane preparations, and more than 40% are spending nearly $7,500 annually per property.

Preparation comes with significant time requirements, too: 16% of respondents say they’re devoting between 31 and 40 hours to it, and nearly a quarter are spending between 41 and 100 hours, according to the white paper.

Read the full Commercial Observer article here.