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Developers

The real estate marketplace is evolving rapidly with new risks regularly emerging for developers. As the needs and preferences of businesses, tenants, and communities change, Marsh's Commercial Real Estate Practice can help developers reimagine how they deliver and protect value.

In nearly every community, real estate development is adapting to meet evolving needs. Demand for retail, office, and residential properties is undergoing a transformation that accelerated during the COVID-19 pandemic.

Tenants and owners are seeking more flexibility, access to local amenities, and creative uses of interior and exterior spaces. Increasing demand for lifestyle centers, with mixed-use properties, and new kinds of consumer experiences require developers to think differently.

At the same time, developers need to contend with new environmental liabilities, more demanding lender requirements, and construction challenges, including worker shortages and supply chain disruptions.

Marsh's team of risk specialists has a deep understanding of real estate development and the risks in this sector. We can help your businesses manage them, so you can focus on growth and profitability.

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The real estate market is dynamic, influenced by macroeconomic as well as local factors. Some of the risks that developers see in virtually every market include:

  • Property damage
  • Third-party liability
  • Shortages of skilled labor
  • Cost inflation in building materials
  • Delivery delays
  • Pricing volatility
  • Subcontractor default

Our risk specialists can help you better understand these risks, design a robust program to mitigate them, and bring that program to life.

There is increasing demand globally for projects that utilize green building techniques, from sustainable materials to systems that use energy and water resources more efficiently. Often, these green building elements save money over the long term but are more expensive to install initially – and cost more to replace if damaged. Developers may need to invest in new equipment, expertise, and partnerships to realize their target returns on investment. Managing traditional and emerging risks in every development project is critical to maximize value.

Just as the real estate market itself is evolving, so too are the risk management solutions available to developers. Among the insurance solutions that developers should consider to protect their people and investments are:

  • Builders risk insurance
  • Subcontractor default insurance (SDI)
  • General liability
  • Workers' compensation
  • Cyber liability
  • Environmental liability

Marsh’s real estate risk specialists have the experience and the tools to help developers deliver and protect the value of projects that can transform communities.

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Paul Foye

Paul Foye

US Practice Leader, Real Estate

  • United States