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Climate Risk Modeling Exposes Hidden Debt Service Gaps in CRE

Learn how climate risk modeling reveals hidden debt service gaps in coastal CRE underwriting. Albert Slap of RiskFootprint explains why Expected Annual Loss is critical for investors.

This matters because traditional underwriting ignores climate-driven hazards that can devastate property cash flow. For commercial real estate investors, failing to incorporate hazard modeling means accepting invisible risks that could lead to default. As insurance tightens and hazards intensify, quantifying exposure through tools like Expected Annual Loss and platforms such as RiskFootprint becomes essential for accurate pricing, capital allocation, and portfolio resilience. Ignoring this data could mean buying assets that cannot survive their first major storm.