A survey from Seyfarth found 69% of commercial real estate executives are concerned about a cyberattack, up significantly from 46% last year. The trend toward "smart" and "green" buildings increases cybersecurity risks, three attorneys write.
Multifamily developers are still targeting the top cities for new projects, but they're becoming more cautious. Demand is outpacing supply, and multifamily builders are focusing on both expensive markets where the workforce is highly educated and rapidly growing, less expensive towns.
US commercial real estate investors see cites such as Boston and Los Angeles as their most promising options as the economy's growth slows, according to Ann Cole, co-portfolio manager for JPMorgan Asset Management's real estate team. Cities including Austin, Texas, are also attractive but are often too reliant on a single company or industry to be safe bets, Cole said.
As the current commercial real estate cycle enters its late stage, many investors are becoming more conservative in their acquisitions and underwriting. "Fundamentals are still strong and there are pockets of growth, but that growth is not consistent across all sectors, and we're starting to see some defensive positioning creep in," said Jonathan Geanakos, JLL's president of the Americas capital markets group.
A planned overhaul of the National Flood Insurance Program will involve the use of private-sector data to price flood insurance based on homes' individual flood risk, supplanting the current reliance on a single formula for all homes in a flood zone, the Federal Emergency Management Agency said. The revised rates, which will also include coastal-surge risk and home-replacement costs as factors, are expected to take effect beginning in October 2020.
Virtua Partners is among the earliest entrants into this arena with its SpringHill Suites by Marriott project in the Phoenix suburbs, where the private equity group is pursuing 15 Opportunity Zone projects among more than 100 nationwide. Opportunity Zone investors, meanwhile, are waiting for the next round of related regulations from the Treasury Department.
Wage & Hour claims represent over 90% of the employment class actions filed every year, and the Department of Labor has noted that over 80% of employers are in violation to some degree. 2018 represented one of the highest levels of Fair Labor Standards Act (FLSA) case filings, but more importantly, state laws and court doctrine at the federal and state levels are changing so rapidly in this space that it is virtually impossible for employers to keep up.
With this in mind, join leaders from Aon, Markel and Jackson Lewis to discuss how these constantly changing rules, increasing claims frequency and severity, and the 2019 Wage & Hour insurance marketplace trends may impact your company; as well as proactive steps you can take to help address this exposure. Register here.
Aon Political Risk Quarterly
Aon's quarterly Political Risk newsletter is developed in collaboration with Continuum Economics. This newsletter provides insights into global developments and actionable insights for businesses. Be sure to check back next month when we release the 2019 Aon Risk Maps. Access the Political Risk Newsletter here.
Frances Mayes, professor, writer and "Under the Tuscan Sun" memoirist
March 20 is the spring equinox
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