Use Case

Resilience-Adjusted Valuation

Valuation is the process of determining the market value of a property ahead of sale, during holding horizon, or prior to purchase.


Conventionally

It’s a key part of the real estate lifecycle and generally considers property location, capacity for use, connected amenities & infrastructure, and current & projected market demands.

Resilience-adjusted valuation (RAV) refers to the process of quantifying a property’s resilience to climate risk and extreme events, and pricing it into an asset’s appraisal. One Concern aims to integrate resilience into the standardized asset valuation process, because a property’s real value should consider its risk from extreme weather, disasters and climate risk. Ignoring these risks contributes to significant valuation gaps and misunderstood exposure.


Challenge

Valuation gaps from misunderstood exposure to disasters, extreme weather, and climate change cause businesses to make decisions based on an imperfect or entirely inaccurate picture of reality. This results in difficulties with mitigation planning, negative equity from a loss of value, and a hit to the opportunity cost of exercising capital more effectively elsewhere.


Solution

One Concern helps customers to understand their property’s direct structural risk from climate, natural disasters, and extreme weather – as well as the networks the property depends on to remain operational. We identify downtime across multiple hazards and return periods, including the impact of climate change under the scenario of 1.5 degrees celsius temperature increase.

Finally, One Concern powers financial models using 1C DNA Downtime Statistic™, allowing users to compare and contrast different mitigation parameters for an understanding of how risk impacts valuation.

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