Post-Cyclone Gabrielle considerations
Cyclone Gabrielle in February 2023 significantly impacted Hawke's Bay's commercial property landscape. When buying commercial property in our region, additional due diligence is now essential.
Key areas to investigate:
- Flood history: Was the property affected? What remediation was done?
- Insurance position: Is full cover available? At what cost?
- Council categorisation: Any Category 3 or flood zone classifications?
- Tenant resilience: How did tenants' businesses cope? Have they recovered?
Seismic considerations
Hawke's Bay has specific seismic risks that affect commercial property:
Buildings under 34% NBS may be classified earthquake-prone with remediation timeframes
Understand the cost to bring buildings to at least 67% NBS
Low NBS ratings can affect insurability and premiums
Insurance in the post-cyclone environment
Cyclone Gabrielle significantly impacted the Hawke's Bay insurance market. Commercial property insurance is now more complex and expensive in our region.
Some properties now have flood exclusions or high excesses. Check what cover is actually available before committing.
Properties in flood-affected areas face significantly higher premiums. Factor this into your yield calculations.
Check whether your lease requires you to maintain specific levels of cover. Some older leases assume cover that may no longer be available.
Request disclosure of any previous insurance claims and remediation work. This affects future insurability.
Due diligence tip: Get insurance quotes before going unconditional. What was insurable before Cyclone Gabrielle may not be insurable on the same terms today.
Post-cyclone due diligence additions
For properties in the region, we now routinely include:
- - Updated hazard information from council
- - Insurance confirmation as a condition of any contract
- - Cyclone damage disclosure from vendor
- - Review of any EQC or insurance claims
Local market knowledge
We've been advising on commercial property in Hawke's Bay for over 150 years. We understand:
- Local planning requirements across Hastings, Napier, and Central Hawke's Bay
- Industrial zones and their permitted uses
- Heritage building obligations in CBD areas
- Port and infrastructure considerations for industrial properties
What Carlile Dowling does
Our local expertise includes:
- • Local knowledge of specific areas and properties
- • Relationships with local councils, professionals, and market participants
- • Understanding of post-cyclone considerations and recovery status
- • Coordination with local experts for building, valuation, and environmental matters