NewsInsurance challenges have become a major cause of concern among real estate investors and in some cases, firms are forced to abandon deals and miss out on opportunities.
Michael Webb was quoted in recent GlobeSt.com article “Rising Insurance Is Killing More and More Deals” regarding the challenges clients are facing with increased insurance costs.
From the article:
Michael L. Webb, Counsel, Real Estate at Farrell Fritz in New York, tells GlobeSt.com, “On the development and ownership side, we are seeing our clients experience continued difficulty trying to manage the imbalance that significantly increased insurance costs are injecting into project proformas.
“Especially in the multi-family rental space, insurance premiums and costs are rising at rates that cannot be passed through to end-users as increases to rent or additional rent.”
Webb said that rising insurance costs are exacerbating adverse market conditions and giving developers and investors another reason to pause if they cannot figure out how to make projects “pencil” and generate a reasonable return on their investment.
Read the full article on GlobeSt. here: