More and more Multifamily housing, apartment, medical communities, and student housing investors are finding higher returns on quality buildings. A new study by the National Institute of Building Sciences show that resilient infrastructure and design, that meets contemporary standards and codes pays off in both the short and long run.
The report shows “significant savings that result from implementing mitigation strategies in terms of safety, and the prevention of property loss and disruption of day-to-day life,” according to its press release.
“For every $1 spent in added up-front construction cost and long-term maintenance costs to “improve existing facilities” by increasing their resiliency or build new, higher-quality construction projects, the nation as a whole experiences $11 in potential benefits, calculated as the present value of the savings in futures losses that the mitigation strategies prevent,” according to Multifamily Executive.
The code related mitigation strategies the project team studied demonstrated that:
For flood resistance, incorporating at least one foot of freeboard into the elevation requires to comply wit the 2018 I-Codes saved $6 for every $1 invested.
For resistance to hurricane winds, complying with roofing and a variety of openings and connection detailing requirements in the 2018 I-Codes saved $10 for every $1 invested.
For resistance to earthquakes, building new buildings stronger and stiffer relative to comply with the 2018 I-Codes saved $12 for every $1 invested.
“The study goes so far as to quantify the BCRs for specific mitigation strategies. For example, the researchers found that buildings could save $6 for every $1 added in cost to elevate a building with at least 1 foot of freeboard in elevation for flood resistance, as per the 2018 I-Codes, the latest editions of the model codes by the International Code Council. Compliance with hurricane-wind resistant strategies for roofing, opening, and connection details could save $10 in remediation costs for every $1 invested. And, finally, buildings constructed with increased resistance to seismic forces per the codes could save $12 in potential remediation costs for every $1 invested.”
Protect Your Investment
The key to a successful development is to stand out from the competitors. New construction and upgrades of existing properties will need to focus on high tech and ‘green’ construction. A key factor for continued growth will be to understand the demographics and achieving their needs.
Contact SWET Construction Group for a successful project with high returns on investment!