Following Hurricane Sandy’s savage attack on Lower Manhattan and the rest of the tri-state area Monday evening, real estate experts are now tallying the current and expected costs of storm on the City’s commercial and residential property stock.
In an analysis presented by Adam Pincus of the Real Deal, 17.3 million square feet of office space remains out of commission due to flooded basements from Sandy’s madness. These buildings will need a city inspector to give permission to reopen or a certified architect to deem the building as being able to pass inspection, meaning that, among other thing, there is no standing water in the building.
Impact on New York City Residents
For New York City residents, however, the pain of losing their living spaces has been far more painful, with thousands, especially in Staten Island and Queens, losing their homes.
While still too early to give sound estimates of the level of home damage caused in the tri-state area by Hurricane Sandy, some experts have projected losses that range from $7 billion to $20 billion.
So far, AIR Worldwide projected insured losses at $7 billion to $15 billion while Eqecat has its estimates at $10 billion and $20 billion. The estimates of both firms now exclude residential flood losses which are insured by the federal National Flood Insurance Program.
Some in that program estimate that the Federal Emergency Management Agency (FEMA) will receive over 80,000 claims for Sandy-related damage. According to EQECAT, 30-40% of those 80,000 cost claims incurred by Sandy are expected to be from New York City damage with FEMA expected to cover up to 75% of the city’s losses.