Design and Construction, Emergency Preparedness, Safety, Sustainability/Business Continuity

Is Overlooking ‘Seismic Red Flags’ Putting Billions in Property Value at Risk?

The statistics are undeniable: FEMA and the U.S. Geological Survey estimate an annual toll of over 6,000 injuries and 360 fatalities from earthquakes across the United States. California bears the brunt of this impact, shouldering over 60% of the nation’s earthquake-related injuries and fatalities. In addition, the state experiences $9.6 billion in economic losses every year due to seismic activity, highlighting the significant financial burden these events impose.

Despite these sobering realities, a dangerous disconnect persists between scientific certainty and proactive strategic action. For example, much of America’s building stock was constructed long before modern seismic codes were established, leaving critical structural deficiencies embedded within some of the nation’s most valuable real estate assets. These deficiencies pose severe risks to both human safety and economic stability when earthquakes inevitably occur.

For facilities managers and building owners, the question is no longer whether seismic events will happen, but whether their properties are equipped to withstand them. The challenge is not just about survival—it’s also about resilience. Those who address these risks today are in a position to transform potential vulnerabilities into a competitive advantage, securing their investments while safeguarding lives and livelihoods.

The Compliance Trap: Why Current Approaches Fall Short

The most critical mistake facilities teams make is treating seismic retrofitting as an isolated compliance exercise rather than integrating it with planned renovations and tenant improvements. This reactive approach creates a cascade of missed opportunities that compound over time, resulting in higher costs, greater operational disruption, and prolonged vulnerability.

When facilities managers proceed with tenant improvements without conducting comprehensive structural evaluations, they overlook cost-effective opportunities to address seismic deficiencies simultaneously. A single retrofit during a scheduled renovation eliminates redundancy and avoids repeated operational disruptions over decades. Instead, many teams find themselves facing multiple phases of invasive work—each more expensive and disruptive than the last.

The warning signs are often hiding in plain sight: Cracks in masonry, degraded mortar, and unreinforced facades serve as red flags that demand immediate attention. Buildings constructed with old masonry or unreinforced design—particularly those built without lateral resistant systems—represent the highest-risk assets in any portfolio. Yet these visible indicators are frequently overlooked during routine facility assessments, creating compounding vulnerabilities that threaten both safety and financial performance.

California’s risk concentration is particularly acute. San Francisco County ranks as the most earthquake-vulnerable in the nation, followed closely by Los Angeles County. However, seismic risk extends far beyond the West Coast. Memphis, specifically Shelby County, Tenn., ranks fourth nationally due to the New Madrid Seismic Zone, while Seattle in King County, Wash., faces significant exposure from the Seattle Fault. This broad geographic distribution underscores the critical need for nationwide awareness and proactive planning to mitigate potential disasters.

Strategic Retrofitting: Turning Risk into Resilience and Value

Forward-thinking facilities managers are discovering that strategic seismic retrofitting delivers benefits that extend far beyond compliance. When properly integrated with broader building improvements, retrofits can unlock significant value creation while strengthening structural resilience. This dual-purpose approach transforms a regulatory requirement into a strategic asset enhancement.

Phased retrofitting offers the most practical path forward for budget-conscious organizations. Rather than viewing seismic upgrades as a standalone expense, successful facilities teams coordinate retrofits with planned renovations, creating synergies that reduce overall project costs. Early involvement of qualified structural engineers enables targeted improvements—such as strategic anchoring or masonry restoration—that can be seamlessly integrated into tenant improvement projects.

The economic case extends beyond immediate cost savings. According to the World Economic Forum, modernizing aging buildings could reduce global energy demand by 12%, generating substantial operational savings while strengthening resilience against multiple threats, including extreme weather, cyber vulnerabilities, and operational disruptions. This comprehensive approach to building modernization positions retrofitted properties as premium assets in an increasingly risk-conscious market.

Tactical Implementation Framework:

  • Integrate with Planned Improvements: The most cost-effective retrofit timing coincides with major utility upgrades, tenant improvements, or adaptive reuse projects. This coordination minimizes disruption while maximizing efficiency gains.
  • Identify Value-Add Opportunities: Before initiating any retrofit project, work with architects and engineers to identify opportunities for space optimization, additional square footage, or enhanced tenant amenities that can offset upgrade costs.
  • Phase for Occupied Buildings: Large, occupied buildings benefit from quadrant-by-quadrant or floor-by-floor implementation as leases expire, minimizing tenant displacement while maintaining operational continuity.
  • Leverage Incentives and Rebates: Research local, state, or federal programs offering financial incentives for energy-efficient retrofits to reduce upfront costs and improve ROI.
  • Measure and Communicate Impact: Regularly monitor project results and communicate energy savings, ROI, and tenant satisfaction to stakeholders to reinforce the value of the retrofit efforts.

Building Tomorrow’s Resilience Today

The path forward requires a fundamental shift from reactive compliance to proactive asset optimization. Professional structural evaluations should become standard components of due diligence for property acquisitions and routine facility assessments. These evaluations provide the foundation for strategic planning that transforms potential vulnerabilities into competitive advantages.

For facilities managers ready to embrace this evolution, the immediate priority is securing qualified engineering consultations before executing any major building improvements. This early involvement ensures that structural assessments, damage evaluations, and value-engineering opportunities are identified and integrated into project planning from the outset.

The broader industry must also evolve to support this transformation. Structural engineering, architecture, and development communities must collaborate to advocate for enhanced incentive programs and accessible financing solutions that reward proactive owners rather than simply penalizing inaction. The current regulatory framework often mandates action without providing the financial mechanisms necessary for efficient implementation.

The next major seismic event will not wait for perfect preparation, but strategic action today can ensure that when it arrives, our buildings—and the communities they serve—are positioned not just to survive, but to recover and thrive. The choice between reactive vulnerability and proactive resilience remains in our hands, but the window for decisive action continues to narrow with each passing day.

Kyle Tourjé is a second-generation contractor specializing in structural retrofitting, repair, and geohazard mitigation throughout Southern California. As executive vice president of Alpha Structural Inc., he oversees all engineering and construction operations.

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