Climate change and commercial real estate: Evidence from Hurricane Sandy
研究了飓风桑迪后专业投资者如何将洪水风险资本化到商业房地产价格中，发现纽约和波士顿的洪水风险房产均出现持续折价，且由资本化率驱动。
Abstract We study how professional investors capitalize flood risk in commercial real estate (CRE) markets after hurricane Sandy. We show that New York CRE exposed to flood risk trades at a large, persistent discount. CRE in Boston, which mostly escaped direct hurricane‐related damage, also exhibits persistent price penalties. These price effects are driven by asset‐level capitalization rates, not building occupancy. Results from a placebo test using real estate prices in Chicago show that our inferences are not driven by coincidental, unrelated price trends for waterfront real estate assets. Our results are consistent with professional investors responding to a persistent shift in the salience of flood risk post‐Sandy, even in locations spared by the disaster.