According to a recent LinkedIn post from First Street, the company is focusing on the impact of rapidly rising commercial real estate insurance costs on financial performance. The post notes that since 2017, insurance premiums in the CRE sector have increased by more than 150%, creating added pressure on net operating income, asset valuations, and overall investment returns.
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The LinkedIn post highlights that First Street has been analyzing how climate risk is influencing these insurance trends across 120 U.S. markets. It indicates that the firm is linking insurance pricing dynamics directly to financial outcomes, suggesting a data-driven framework for assessing climate-related cost pressures on properties and portfolios.
As shared in the post, First Street plans to present its findings in a live webinar on May 14, centered on research titled “The Climate Premium on Commercial Real Estate Insurance.” The session is described as covering how rising premiums are affecting cash flow and valuations, where insurance pressures are most concentrated geographically, and the implications for underwriting and portfolio strategy.
For investors, the post suggests that insurance costs are emerging as a material and potentially volatile driver of CRE performance, particularly in climate-exposed markets. If First Street’s analytics gain adoption among lenders, owners, and asset managers, this could influence underwriting standards, risk-adjusted return expectations, and capital allocation decisions across U.S. commercial real estate.