Climate Risk: Logistics & Industrial Global Outlook

RISK CLIMATE LOGISTICS& INDUSTRIAL

GLOBALOUTLOOK

RECURRENT RISKWITH LOWER SPATIAL VARIABILITY PRECIPITATION

Precipitation patterns continue to change across the world. In some instances, this has resulted in record rainfalls, while others are encountering the opposite—and both present potential issues. In the past year, locations as diverse as Florida, Vienna, Toronto, and Sydney all broke various rainfall records. Current precipitation risk exposure is greatest in Asia’s monsoonal/wet-season markets including Seoul, Hong Kong, and Singapore, though to some extent buildings are already built to withstand these rainy periods. In the U.S, Texas is most exposed. In contrast, rainfall risks are generally low across most of the European markets. Parts of Italy and Spain are more exposed, though their risk is approximately half that of the most exposed markets in other regions. At a more granular level, intra-market variability is typically quite low, but there are a few notable exceptions. Parts of Atlanta and New Jersey have twice the risk exposure of other parts of the same market. Similar divergences occur within parts of France, Spain, and Italy. Strategic Advice: • Storm and weatherproofing sites—including considering hardstand areas, run off and nearby drainage can ensure your site continues to operate during rainy periods. • Given the large roof areas, rainwater harvesting may be feasibile, though sizing equipment correctly is critical. A large roof may be able to harvest far more water than you need.

HIGHEST BUILDING RISK SCORE IN SUBMARKET

AVERAGE SUBMARKET RISK SCORE

LOWEST BUILDING RISK SCORE IN SUBMARKET

100

80

60

40

20

0

FRANCENUTS2REGIONS

CLIMATE RISK: LOGISTICS & INDUSTRIAL GLOBAL OUTLOOK 12

CUSHMAN & WAKEFIELD