"What's More Important - the Economic Forecast or the Weather Forecast"
      by Richard Yaffe, R.A. - Vice President-Asset Management

This article was set to appear in last month's Long Island Spotlight. I was asked to summarize current trends in property management as they relate to the final quarter of the year. I was to hypothesize about where I saw interest rates going, the upcoming presidential election and its effect on our business, the ongoing terror alerts, and quite possibly the influence that the New York Yankees would have - if they win the World Series - on the Long Island real estate market.

And then, Charley happened. Then Frances. Then Ivan. The most severe back-to-back-to-back hurricanes in recent memory bombarding the southern coast of the country, with repercussions felt throughout a third of the nation. While Long Island did not suffer the loss of life and property devastation incurred by our southern neighbors, our area was struck with severe flooding due to the deluge of rain. And thus I decided that my article on the economic forecast would instead be about the weather forecast.

As any property manager or architect will tell you, the number one issue affecting occupants of a building is keeping the rain out. As a property manager and an architect, I fully attest to this. If it's leaking over someone's desk or if the parking lot floods, you can be sure that you're going to hear about it. Even though we are constantly making repairs and capital improvements to the properties we own and manage, whether it be roofing, catch basin work, basement wall waterproofing, or coating the facades, we're not foolish enough to believe that during severe weather conditions, we won't experience problems. The key is to have qualified contractors and staff on hand and ready to take corrective action to mitigate damages and handle tenant concerns. Still, there are some things that we can do prior to a rainstorm.

Let's begin with the property itself. It's important to have regularly scheduled cleaning and maintenance of the parking lot catch basins. Depending upon the site, these basins can fill up with garbage, cigarettes, leaves, and mud, leaving the bottom of the basin covered. In turn, this prevents proper seepage of the storm water into the ground. Subsequently, during a heavy downpour, the basins fill up quickly, and overflow onto the parking area. We regularly have the catch basins orange peeled and vacuumed in order to remove not just the debris, but also several feet of dirt at the bottom of the pit. We then backfill to the appropriate level. Of course, if the quantity of the basins is insufficient to handle a downpour, no amount of maintenance is going to matter. The number and location of catch basins is critical throughout the paved area. Underground overflow pits that are piped together may also be necessary to handle a deluge.

A well-design and maintained roof is the key to keeping a building dry. Without getting into the various types of systems on the market, a critical decision is knowing when to apply a layer over an existing roof and when to rip up and replace. This decision depends upon several factors: the number of roof layers already on the structural deck; whether the underlying insulation is saturated, causing the steel deck to corrode; the slope of the roof and if it's pitched properly towards the roof drains; and the presence of alligatoring, open seams, and blistering. When performing roofing work, it's always a good idea to check the status of all penetrations through the roof. Old flues and pipes that have long since been disconnected should be removed and patched. Each penetration is a potential location for a leak, so it's best to limit the liability. Finally, roof drainage needs to be well-designed so that as water flows through the drains, it empties either directly into the underground catch basins - preventing flooding of the parking area and icy conditions in the winter months - or into landscaped areas where the ground can more quickly absorb the water.

While a sound roof is your best defense against leaks, it's also important to check the building facades and basement walls for repairs. Wind-driven rains, like those we experience during hurricanes, force water into the building through masonry cracks and poorly caulked windows. In addition to performing masonry pointing, we coat buildings with an elastomeric coating system. Such coatings seal hairline cracks, allow the façade to breathe, and come in a variety of colors. All caulking of expansion joints and around windows should be periodically inspected and replaced to insure proper adhesion. Weep holes should be checked to make sure that they are clear of obstructions.

The economy moves up and down, but the weather is always here. Not to be a pessimist, but whether we're in a recession, depression, bull market, or bear market, whether interest rates rise or fall, whether the Yankees win the World Series or not, it's always going to rain.