Why Ignoring Seismic Retrofit Costs Now Means Paying Billions Later

The Problem: A Widening Gap Between Risk and Readiness

The scale of our collective vulnerability is growing. While the U.S. Geological Survey (USGS) quantifies the immense financial risk—with California alone accounting for $9.61 billion in annualized losses—policy measures are failing to keep pace. The recent, abrupt cancellation of over $30 million in FEMA grants earmarked for retrofitting high-risk soft-story apartment buildings has left a critical funding void. These are the very structures known for deadly collapses in past quakes.

At the same time, cities are grappling with how to enforce safety. Los Angeles, for instance, has required over 12,000 buildings to undergo preliminary structural assessments and retrofitting, an important but incomplete step. This ordinance mandates evaluation and retrofitting but stops short of helping fund these critical retrofit projects, and some of the most vulnerable buildings have much longer deadlines to complete retrofitting due to high construction costs. Sadly, those deadlines may come too late. For building owners, this creates a confusing landscape where the urgency is clear, but the path forward is obstructed by logistical and financial hurdles. The reality is that we cannot simply assess our way to safety; we must make retrofitting a priority.

Strategic Opportunity: Proactive Retrofitting as Smart Business

For many property owners, the primary challenges with retrofitting are tenant disruption and upfront costs. Commercial leases, often spanning five to 30 years, make it difficult to schedule invasive structural work without impacting revenue-generating tenants. Furthermore, the lack of robust financing programs to offset the cost of both the retrofit and subsequent tenant improvements creates a significant barrier to action. This often leads owners to defer crucial structural maintenance, which only compounds seismic vulnerabilities over time.

However, forward-thinking owners are recognizing that proactive retrofitting is not just a cost, but an investment in long-term asset protection. By integrating seismic upgrades with other necessary projects, they can mitigate disruption and maximize their return.

• Combine and Conquer: The most opportune time to implement seismic upgrades is during other invasive projects, such as major utility replacements or renovations. Addressing all necessary work at once, while a larger initial expenditure, is far more cost-effective than enduring multiple phases of tenant relocation and operational disruption.
• Affordable, High-Impact Steps: Not all retrofits require a complete overhaul. For wood-frame buildings, foundation anchorage, bolting of connectors or diaphragms, and the installation of shear walls offer significant resilience at a manageable cost. While masonry, steel, and concrete structures demand more complex solutions, a professional evaluation can identify the most critical and cost-effective first steps.
• Phased Implementation: For large-scale projects, retrofitting can be done in quadrants or partial occupancies. This approach minimizes displacement and allows operations to continue, making the process more manageable for both owners and tenants.
• Prioritize Life-Safety Improvements: Focus first on retrofits that improve life safety and collapse prevention, such as strengthening critical load-bearing elements or addressing vulnerabilities in soft-story or unreinforced masonry buildings. These upgrades protect occupants and reduce liability.
• Leverage Incentives and Funding: Explore government grants, tax credits, or low-interest loans available for seismic retrofitting. These programs can help offset costs and make essential upgrades more financially feasible.

The Future Outlook: From Complacency to Command

The greatest misconception among building owners is that a catastrophic earthquake “won’t happen in our lifetime.” This complacency is a dangerous gamble. We have been fortunate to avoid a major quake in a densely populated area for decades, but this has only fostered a false sense of security. The reality is that structural neglect alone can lead to catastrophic failure, as evidenced by recent building collapses in New York and Florida, which occurred without any seismic event.

The most effective first step for any building owner is to commission a professional evaluation to understand the true condition of their asset—from seismic vulnerabilities to deferred structural maintenance. Knowing your building’s weaknesses is the foundation of any resilience strategy. It’s hard to operate a building, but knowing your priorities is where you start. Earthquake resilience is imperative, not optional. Taking smart, manageable steps today is the only way to protect lives, limit liability, and ensure your assets withstand the inevitable.