Commercial real estate owners, developers, and lenders have a direct financial interest in understanding how seismic events may impact on the value, operability, and long‑term performance of their assets. In seismically active regions, earthquakes represent a material risk that can affect physical damage, business interruption, and capital markets outcomes.
GRS Group provides Seismic Risk Assessments (SRAs) for individual assets and multi‑property portfolios nationwide. Our assessments are performed using current, industry‑recognized methodologies and are tailored to support real estate transactions, financing, portfolio management, and investment decision‑making.
ASTM Compliant Seismic Due Diligence
Seismic Risk Assessments prepared in accordance with ASTM International standards are widely required as part of commercial real estate due diligence in earthquake‑prone regions. These standards establish a consistent framework for evaluating seismic hazards, site conditions, and building performance, enabling lenders, investors, and owners to make informed risk‑management decisions.
GRS Group’s Seismic Risk Assessments conform to the most current ASTM standards:
- ASTM E2026‑24 — Standard Guide for Seismic Risk Assessment of Buildings
- ASTM E2557‑24 — Standard Practice for Probable Maximum Loss (PML) Evaluations for Earthquake Due Diligence Assessments
These standards establish a consistent framework for evaluating seismic hazards, site conditions, building performance, and potential financial losses, providing stakeholders with reliable and comparable information for risk‑based decision‑making.
Scope and Methodology
ASTM E2026‑24 provides structured guidance for conducting seismic risk assessments, establishes standardized terminology, and defines multiple levels of investigation. This framework allows GRS Group to clearly align the assessment scope with each client’s objectives, risk tolerance, and transaction requirements. [astmestandards.com]
Seismic Risk Assessments may evaluate the following components, as applicable:
- Seismic Ground Motion — Characterization of regional and site‑specific earthquake hazards
- Site Stability — Evaluation of earthquake‑related hazards such as fault rupture, liquefaction, lateral spreading, and settlement
- Building Stability — Assessment of the structure’s ability to maintain vertical load‑carrying capacity during seismic events
- Building Damageability — Estimation of anticipated structural and non‑structural damage
- Business Interruption — Consideration of functional downtime and operational impacts, when requested
Levels of Assessment
ASTM E2026‑24 defines multiple levels of assessment to address varying due‑diligence and risk‑management needs:
- Level 0 — A limited, screening‑level review intended to identify the presence of potentially significant seismic risks
- Level 1 — A baseline, portfolio‑appropriate assessment incorporating readily available data and field observations
- Level 2 — A more detailed evaluation that may include analytical modeling and enhanced site or structural review
- Level 3 — A comprehensive engineering‑level assessment intended for complex assets or elevated risk tolerance thresholds
Each successive level increases the depth of analysis and precision of loss estimates, enabling clients to balance cost, schedule, and decision‑making needs appropriately. [astmestandards.com]
Probable Maximum Loss (PML) Reporting
When required, GRS Group prepares Probable Maximum Loss (PML) evaluations in accordance with ASTM E2557‑24, the current standard governing earthquake PML assessments used in real estate finance and capital markets.
ASTM‑compliant PML reports provide lenders, investors, and rating agencies with a consistent basis for estimating potential earthquake‑related losses to physical improvements and are a critical component of seismic due diligence for debt placement and securitized transactions.
