Flood zone and flood insurance - how concerned would you be about building or owning CRE in a flood zone?
I'm looking for some land for a warehouse. I'm in FL near a coast so it's common for there to be large sections of flood zone in certain areas of town.

What are you flood insurance premiums like? Would you buy a property in an AE flood zone?
[{"id": "j0tvhra", "text": "There\u2019s an engineering firm that can help you assess whether or not your flood zone can be revised per the current maps. I would include that assessment in your due diligence just to know.  DM me and I\u2019ll find the contact info for you.", "replies": [], "depth": 1}, {"id": "j0tvyru", "text": "Which coast or what region of FL?", "replies": [], "depth": 1}, {"id": "j0u29dg", "text": "The flood maps are telling you it *will* be a problem at some point.", "replies": [], "depth": 1}, {"id": "j0u7cdj", "text": "I live in an area where we've had 2 \"100 year floods\" in the last decade. I've seen the destruction.  I wouldn't buy anything in a flood zone no matter how good the deal was.\n\nOne thing that people don't realize is that when you have a major flood, good luck finding someone to do the things that need done immediately when the water recedes and the remediation. These folks will be covered up. \n\nIt's a nightmare.", "replies": [{"id": "j0us0j4", "text": "This guy knows. In the event of a major flooding event, it\u2019s not as simple as a State Farm auto claim. Youre going to fight for every dollar and you\u2019re probably going to have to front a lot of it first. You\u2019re competing with everyone else for limited labor and resources, and if you don\u2019t have the deepest pockets, the most stable insurer, and the best lawyer you\u2019re going to have a bad time. If you have a tenant in there, then you have to add all their casualty stuff on top of taking care of the building itself.", "replies": [], "depth": 2}], "depth": 1}, {"id": "j0uebqw", "text": "Not sure for WH but flood premiums have gotten pretty expensive over the past couple years for office. In the range of all in insurance cost getting to $0.50-$0.60 psf. Even higher if you\u2019re planning on getting windstorm too it could get close to an all in insurance cost of $1 psf", "replies": [], "depth": 1}, {"id": "j0uqd2w", "text": "If it\u2019s a FEMA flood zone, very difficult to change. The process of building around it is tedious, you have to go through a LOMR process (google it).\nDefinitely get a civil engineer on board", "replies": [{"id": "j0wd6oi", "text": "Just go up on stilts. Easy peasy /s", "replies": [], "depth": 2}], "depth": 1}, {"id": "j0vbtn5", "text": "Curious on this question. I have developable land Brooklyn but in a AE flood zone. Would this be a red flag to developers? Are current building codes up to snuff so that the property is covered in the future from 100 year events?", "replies": [{"id": "j0wnx1a", "text": "Provided it's not wetlands, you can raise your ground, get it re-certified, and your ground will be more valuable. Developers are willing to buy AE land, however at a much reduced cost as they will have to do the same thing. At todays current costs and rates, they likely would pass as is unless it was significantly discounted.....Source: me, qualifications: done it a bunch.", "replies": [{"id": "j0x3y6b", "text": "Thanks for the response. Yes I do see lower PPBSF prices from my area mainly because it does not attract the same renters as in northern BK/Manhattan. But I do see documentation for a flood elevation in DOB plans which reduced premiums significantly if built higher than the base flood elevation. Guess it becomes risk/reward for how high you want the foundation to be to avoid water damage and lower premiums vs lower building cost.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j0wg23m", "text": "AE zone seems especially problematic for a warehouse, which would presumably be full of stuff that could be ruined in a flood.", "replies": [], "depth": 1}, {"id": "j0wganx", "text": "From the perspective of an industrial developer with multiple ground up projects in flood zones in my pipeline - \n\nWe import dirt if necessary to bring the finished floor elevation of the warehouse slab above the 500 yr mark.  I don\u2019t think my capital partners or insurance providers would go for my deals if I was only above the 100yr mark and they certainly wouldn\u2019t go for it if I was below that.  I also think I\u2019d miss out on tenants for my development if I somehow found a way to finance and insure such a deal.\n\nYMMV but the risk is something my business model can not accommodate.", "replies": [], "depth": 1}, {"id": "j0whlyo", "text": "Where in FL?", "replies": [], "depth": 1}, {"id": "j0wmpi4", "text": "We own warehouses in flood zones, as long as they're as your finished flooring elevation (FFE) is outside of your flood zone, you're less likely to have an issue. Typically, this means your ground needs to be raised in order to get your FFE out of the zone. \n\nTo re-classify your zone, you'll need to go through your LOMR process, usually a few grand to an engineer to handle it. That said, even if you raise your property out of the AE zone and get your LOMR, your lender will likely still require the flood insurance. \n\nThere's no way I'm buying anything in Florida for a couple reasons. One, the consistent flooding that occurs, two, the fact that no one will insure in Florida, unless it's an insane amount. Premiums out there are a joke and it's why my email is constantly filled with owners trying to sell their Florida properties.", "replies": [], "depth": 1}, {"id": "j0x275u", "text": "Everything in Florida is in a flood zone- what you need to be worried about is wetlands/endangered species/grand oak trees. Not the insurance premium you may have to pay if you\u2019re in a floodzone", "replies": [], "depth": 1}, {"id": "j0xlq29", "text": "Very concerned. So much so I look for assets that aren\u2019t on a federal flood map.", "replies": [], "depth": 1}]