According to a recent LinkedIn post from First Street, the company is focusing on how rising insurance costs are reshaping the economics of commercial real estate. The post notes that commercial real estate insurance premiums have climbed more than 150% since 2017, with implications for net operating income, asset values, and investment performance.
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The post highlights that First Street has been analyzing the connection between climate risk and insurance pricing across 120 U.S. markets, aiming to link these dynamics directly to financial outcomes for property owners and investors. It also promotes a May 14 webinar that will present findings from the firm’s research, titled “The Climate Premium on Commercial Real Estate Insurance.”
According to the post, the research is set to address how rising premiums are affecting cash flows and valuations, where insurance cost pressure is most concentrated, and how these trends may influence underwriting and portfolio strategy. For investors, this focus suggests First Street is positioning its analytics as a tool for assessing climate-driven insurance risk, which could be increasingly relevant in pricing assets, evaluating market exposure, and adjusting long-term CRE investment strategies.