“If you are down for 24 hours after a hurricane, you
don’t’ even know what business you’re missing,” he
For brokers in the Houston area, the one thing that
sometimes gets overlooked is having insurance in place.
“When you are proceeding with a deal and it is get-
ting close, start working on the insurance right then,”
Spears recommends. “It doesn’t matter if the deal is
going to close in two weeks, if you can get the insurer to
write a policy and bind it, do it.”
He gives this example: “Before a recent hurricane, I
had three deals with title companies that we set to close
on a Wednesday, Thursday and Friday. A storm, not
even a hurricane yet, entered the gulf on a Monday. I
Long Island doesn’t get
too many serious hurricanes,
so this dense suburb of New York wasn’t prepared for
the destructive power of Hurricane Sandy. In some
regards, they still haven’t learned any lessons from it,
notes Gary Joel Schacker, SIOR, and principal with
United Realty in Jericho, NY.
Most of the physical damage from the hurricane
happened along the south shore of Long Island, which
accounts for only about seven percent of the industrial
and office properties in this important suburban market.
Now this goes back to what Fink calls “wide area
dislocations” because what happened after Sandy was a
long period of time where there was no electricity, and
fuel for automobiles was hard to get.
Before the hurricane few buildings on Long
Island had back-up generators. Individual homeown-ers have since stocked up on generators, Schacker,
however, reports no big push for generators for
What about tenants? Do they want more protection from landlords? Apparently, they too are
“We owned a building with three tenants in Island
Park on the South Shore,” Schacker says. “This was
near the shore and during the hurricane there was three
feet of water in that building. After the hurricane, every-
one did what they had to do, such as filing insurance
claims, and we repaired the building. The tenants did
not want to move out. No one wanted to go anywhere
To which he adds, “that’s the case in most places on
Long Island. No one wants to move or go anywhere
else. Everyone is back in.”
In the Southwest, particularly in Phoenix, the worst
weather is heat-related (the city recently experienced
temperatures near 120 degrees,), but reliable power
(Arizona is a net exporter of energy) keeps the air con-
ditioning humming. At worst, an occasional dust storm
blows through the city.
There are no hurricanes, blizzards or earthquakes.
Indeed, a natural disaster map of the country shows the
Southwest as having the lowest tendency to experience
a natural disaster. This has created opportunity for one
very important technology industry, data centers, or the
back-up storage of corporate data.
Phoenix is in the top five for data storage centers
in the country, reports Tony Lydon, SIOR, CSCMP,
a national director at Jones Lang LaSalle in Phoenix.
“We have about 50 to 60 companies with data center
operations in the Phoenix metro, most importantly in
the Southeast Valley (cities of Tempe and Chandler).
This has been going on for at
least the last two decades.”
All the major banks and
many financial service com-
panies have data center facili-
ties here, Lydon notes.
In addition, a local company IO, a leader in data
center technology, occupies
three large structures in the
Phoenix metro including the take up of 530,000-square-
feet in its Phoenix headquarters.
“We recently completed a project for Cincinnati Bell,
on a 70- to 80-acre site they acquired in the Southeast
Valley,” says Lydon. “The site will be a campus of
seven buildings. The first at 115,000 square feet has
been completed and construction drawing to permit has
been readied for the second building of 300,000 square
feet. It’s all for data storage.”
He adds, “data center activity in the Phoenix metro
has been sustained.”
In the world of data storage, it’s better to be on safe
than sorry ground.
James Fink, SIOR, MRICS
Mike Spears, SIOR
John Steinbauer, SIOR
Gary Joel Schacker, SIOR
Tony Lydon, SIOR, CSCMP
"...IF YOU CAN GET
Steve Bergsman is a
freelance writer in Arizona
and author of several
books. His latest book, "The
Death of Johnny Ace," is
available on all e-book.
IT DONE TODAY, DO
IT. DON’T WAIT UNTIL
IT BECOMES A FIRE-