As sea level rise, coastal storms, flooding, erosion, and subsidence increasingly threaten our coastal communities, many land use professionals have been innovating solutions. In this webinar, speakers from design, engineering, and finance backgrounds will feature case studies of coastal resilience strategies in real estate and land use.
Continue reading
As climate-related events become more frequent and more costly, resilience has evolved from an environmental aspiration into a financial imperative.
For developers, investors, lenders, insurers, and public officials, the question is no longer whether to build resiliently—it is how quickly resilient design can become the new standard.
Few places illustrate this transformation better than Babcock Ranch in southwest Florida.
Often recognized as America’s first solar-powered town, Babcock Ranch is much more than a sustainability success story. It is a real-world demonstration that resilient planning, thoughtful engineering, and environmental stewardship can protect lives, preserve property values, and create stronger long-term investment returns.
The stakes could not be higher.
Nearly 80 percent of Florida’s 22 million residents live within 10 miles of the coastline, making the state one of the world’s most climate-exposed real estate markets. Hurricanes continue to increase both in frequency and financial impact. Hurricane Ian alone caused an estimated $84 billion in damages, making it one of the costliest natural disasters in U.S. history.
As existing infrastructure ages and population growth accelerates across coastal regions, communities can no longer afford to rebuild using yesterday’s standards.
They must design for tomorrow’s realities.
Expected to house more than 50,000 residents at full buildout, Babcock Ranch has attracted worldwide attention not simply because of its approximately 800-acre solar energy installation, but because of how it performed when tested under real-world conditions.
When Hurricane Ian struck southwest Florida in September 2022 with sustained winds exceeding 100 miles per hour, the community emerged largely intact. Homes experienced minimal damage, underground utilities remained operational, residents were able to shelter safely in place, and the town even provided refuge for neighboring communities affected by the storm.
That level of performance was no accident.
It resulted from decades of intentional planning.
Recently, I had the opportunity to visit Babcock Ranch alongside Amanda Staerker, one of the project’s early land planners. Walking the community reinforced an important lesson: resilience is not created by a single technology or building material. It is the product of thousands of interconnected planning decisions.
From the outset, the development incorporated Florida Green Building standards, underground utility infrastructure, native landscaping, extensive stormwater management, preserved wetlands, and a master plan that works with the natural environment rather than against it.
Perhaps most importantly, Babcock Ranch demonstrates that sustainability and economics are not competing objectives.
They reinforce one another.
Resilient communities experience less physical damage, shorter business interruptions, lower long-term maintenance costs, greater insurance confidence, stronger investor interest, and higher long-term asset values. For developers, resilience is increasingly becoming one of the strongest drivers of financial performance.
As Syd Kitson, CEO of Babcock Ranch, observed in a recent Urban Land Institute article:
“Storm safety was absolutely at the top of our list… How could we convince people they could shelter in place? We knew if we did it right from the beginning, we could prove they could.”
That philosophy offers valuable lessons well beyond Florida.
Across the Caribbean, coastal communities face many of the same challenges: stronger storms, rising insurance costs, aging infrastructure, and growing demand for sustainable development. The principles demonstrated at Babcock Ranch—working with natural systems, preserving ecological assets, investing in resilient infrastructure, and planning for long-term adaptation—are directly applicable throughout the region.
At AG&T, we believe the future of real estate development lies at the intersection of resilience, sustainability, hospitality, and sound economics.
Building resilient communities is no longer simply about reducing environmental impact.
It is about protecting investments, strengthening local economies, preserving communities, and creating places capable of thriving for generations.
Resilience is no longer a feature.
It is the foundation of responsible development.
At AG&T, we believe that the future of the real estate industry depends on cultivating diverse leadership, encouraging entrepreneurship, and creating opportunities for the next generation of professionals. These principles have guided our work for decades and remain central to our culture.
As part of that commitment, AG&T was honored to participate in the Urban Land Institute (ULI) Women’s Leadership Initiative (WLI) event, “Developing Your Entrepreneurial Leadership,” held in downtown Miami at Stantec’s offices.
The half-day program brought together accomplished developers, architects, entrepreneurs, and emerging industry leaders for an afternoon focused on leadership, mentorship, and professional growth. Organized by ULI WLI, the event featured three interactive components: a panel discussion, a live business case study, and speed networking sessions designed to foster meaningful industry connections.
The program opened with welcoming remarks from Lisa Neumayer, Chair of ULI Women’s Leadership Initiative, who recognized the importance of creating platforms where women can learn from experienced industry professionals while building valuable relationships.
The keynote panel featured three distinguished entrepreneurs:
Arden Karson, Karson & Company
Adriana Jaegerman, Stantec
Jay Massirman, Rivergate Companies
The discussion was moderated by Adam Greenfader, Chairman of AG&T, who guided a candid conversation on the realities of entrepreneurship and leadership. Topics included building successful companies, balancing professional and personal commitments, learning from setbacks, developing resilience, mentorship, and creating greater opportunities for women to thrive as entrepreneurs and industry leaders.
The discussion emphasized that successful leadership extends beyond financial performance—it requires curiosity, adaptability, collaboration, and a commitment to helping others succeed.
One of the highlights of the afternoon was an interactive case study featuring Amanda Staerker, who presented her vision of transitioning from landscape architecture into the development of boutique hospitality projects throughout the Caribbean.
Participants and industry experts collaborated in reviewing her business strategy, offering practical advice on refining her development vision, strengthening her expansion plan, and positioning her concept for long-term success. The session demonstrated the value of mentorship and the willingness of experienced professionals to invest their time and knowledge in emerging entrepreneurs.
The program concluded with speed networking roundtables, allowing participants to engage directly with panelists and fellow professionals. These conversations created opportunities for mentorship, collaboration, and the exchange of ideas across multiple disciplines within the real estate industry.
AG&T extends its appreciation to Sydney Ramirez, Senior Director of ULI Southeast Florida/Caribbean, Lisa Neumayer, Stantec, and the entire ULI Women’s Leadership Initiative team for organizing an outstanding program dedicated to advancing women in commercial real estate.
Supporting women in leadership is not a one-time initiative for AG&T—it is a long-standing commitment that is reflected throughout our work, our partnerships, and the organizations we support.
Throughout our history, AG&T has actively participated in programs that promote mentorship, professional development, and greater representation of women across the real estate, hospitality, finance, and development industries. We believe that diverse perspectives produce stronger projects, more resilient organizations, and better communities.
As a firm that develops projects throughout the Caribbean, we recognize that the most successful developments are built not only with capital and expertise, but with inclusive leadership that empowers talented professionals to reach their full potential.
Founded in 1998 and headquartered in Miami, AG&T has advised on and participated in more than 55 real estate development projects across Puerto Rico, Sint Maarten, Costa Rica, Panama, Mexico, the Dominican Republic, and other Caribbean markets. Beyond development and advisory services, AG&T remains committed to advancing industry leadership through education, mentorship, and collaboration with organizations such as the Urban Land Institute.
The Governor of Puerto Rico Pedro Pierluisi made the historic announcement at The Puerto Rico Symposium in Miami that Puerto Rico was officially out of bankruptcy. The message was well received by over 250 industry leaders from both the public and private sectors. The event was organized by The Urban Land Institute South East Florida / Caribbean and The Puerto Rico Builders Association.
The Symposium was kicked-off by Scott McLaren, President ULI SE Florida / Caribbean. Scott spoke about the longstanding relationship and collaboration between ULI and the Puerto Rico Builders Association. He highlighted the work on the ULI National Advisory Services Panel on social, economic, and physical resilience in Toa Baja, Puerto Rico. https://seflorida.uli.org/toa-baja-puerto-rico-panel/
Scott Maclaren finished his remarks by recognizing Vanessa de Mari, the new President of the Puerto Rico Builders Association and the first women president in the organization’s 70 year history. The Symposium was dedicated to this historic accomplishment. In attendance were some of Puerto Rico’s top government leaders. This included the Honorable Pedro Pierluisi, Governor of Puerto Rico, Manuel Laboy, COR3 Executive Director, Maretzie Diaz, Deputy Director PR Housing Department CDBG-DR, Natalia I. Zequeira, Commissioner of Financial Institutions, and in attendance, the Secretary of Housing of Puerto Rico, William Rodríguez Rodríguez. The keynote address by the Honorable Pedro Pierluisi, Governor of Puerto Rico’s highlighted the island’s economic accomplishments, the end of Puerto Rico’s population exodus, and the conclusion of the bankruptcy which was officially announced the day of the Symposium.
In the private sector, Ricardo Alvarez-Diaz, CEO, Alvarez-Diaz & Villalon discussed some of progress of the island’s rebuilding after the 2017 hurricanes Irma and Maria. The reconstruction of the island was a constant theme throughout the day with specific examples of over 900 started projects.
The first panel, “Why Puerto Rico: Stories of Success, was a testament to the resiliency of the development community. Moderated by Andrew Carlson, SVP Country Manager, of JLL the discussion highlighted the historic growth of the island’s hospitality sector with the construction and/or renovation of over 3,000 new room keys from El Conquistador, Grand Reserve (formerly known as Coco Beach), Sheraton, AC , and many others. The panel included Federico Sanchez, President & CEO, Interlink Group.
Dan Kodsi, CEO, Royal Palm Companies, Rafael E. Rojo, President & CEO, VRM Companies. Also in attendance was Brad Dean, CEO, Discover Puerto Rico who highlighted the island’s impressive tourism growth (ADR and occupancy rates) during the Covid 19 pandemic and new expansion of tourism throughout all U.S. feeder markets.
As Puerto Rico seeks to build back its tourism and other industries, the financial sector will invariably play a major role. One of the goals of the Puerto Rico Symposium was to facilitate the conversation of growth in both traditional banking as well as new Fintech, IFEs, and other debt/equity players. Natalia I. Zequeira, Commissioner of Financial Institutions, explained the ease of regulations and process for new financial institutions as Puerto Rico shares many of the same regulations of the U.S. states on the mainland. Ms. Zequeira also mentioned that International Financial Entities (IFE) can now participate in special opportunity projects.
https://www.investpr.org/key-sectors/finance-and-insurance/
Michael McDonnell, Executive Vice President, First Bank, that recently re-opened its construction division, was bullish on the island’s economic prospects and announced that the Puerto Rico will achieve positive economic growth (GDP) this year– something it has not done in over a decade. Banesco USA announced the U.S. Department of the Treasury, will invest more than $8.7 billion through ECIP in institutions across the country – Banesco USA is the only bank recipient located in Florida or Puerto Rico.
Over the last few years, we have all hear about the 80 billion dollars of relief aid that has been allocated to Puerto Rico and is coming. In the “Myth versus Reality panel: Federal Funding Opportunities on The Island,” moderator Ella Woger Nieves of Invest Puerto Rico helped lift-up the proverbial transparency veil. Manuel Laboy, the COR3 Executive Director spoke with detailed facts of the funding by agency with FEMA authorizing 5 billion for temporary work, 21 Billion for 9,000 permanent projects and 800 that are currently under construction today. He also discussed the next wave of over 900 projects that are currently under engineering and design. Much of this work will be channeled through CDBG-DR and the PR Housing Department. Maretzie Diaz, the Deputy Director PR Housing Department, explained the process for companies wanting to participate in the island’s rebuilding of housing and infrastructure. Mahdu Beriwal, Owner/founder of EIM provided first-hand knowledge of the rebuilding work in Puerto Rico.
Keynote Speaker Pamela Pautenade, Ex. Deputy Secretary of HUD, was also on hand to share her experiences about the collaboration with the Puerto Rico Builders Association during the 2017 hurricanes crisis. In a moving conversation with Ricardo Alvarez-Diaz, Mrs. Pautenade explained the dedication of the island’s public and private sectors and dispelled any rumors about misuse of relief funds.
Puerto Rico, like much of the Caribbean is in the process of bouncing back from the Covid 19 pandemic. Adam Greenfader, who chairs the ULI Caribbean Council had a high level sit down conversation with keynote Speaker Andrew Farkas, CEO Island Capital Group. The conversation was focused on social equity and specifically what role the financial sector has in supporting the region with a particular focus on sustainability, ESG, and helping economic migrants return back to their island homes.
In the last few years Puerto Rico has become known as blockchain capital of the world. While thousands of tech savvy individuals have moved to the island to take advantage of federal tax incentives they have inadvertently created a new economic driver for the Puerto Rico.
In our “Fintech & Financial Innovation panel in Puerto Rico, Moderator Nathan Whigham, Founder & President, EN Capital discussed the growth of this huge industry. Rodrick Miller, CEO, Invest Puerto Rico, explained what his group is doing to change the paradigm in Puerto Rico from selling tax incentives to focusing on the island’s quality of labor, education system, and proficiency in bio science and other innovations. Stephen Inglis, CEO, Importal explained his new portal to monetize tax credits and Yael Tamar, CEO & Co-founder, SolidBlock explained how her company is integrating real estate and blockchain.
After a marathon day of conversation it was amazing to see the room still full for our last panel “Growth Industries and Tax Incentives” moderated by Carla Campos and an all-star team including Jorge Ruiz Montilla, McConnel Valdez, Francisco Luis, of Kevane Grant Thornton and Rogelio “Roy” Carrasquillo, of the Carrasquillo Law Group. In this panel, specific programs like the Tourism Tax Incentive were explained in detail and there was robust conversation regarding how these incentives have created new jobs in manufacturing, life sciences, construction, and agro-science.
On behalf of all of us at the Puerto Rico Builders Association and The Urban Land Institute SE Florida/ Caribbean, thank you to all of the people and sponsors that made The Puerto Rico Symposium possible. We are all hopeful that together both the public and private sector can create long lasting sustainable economic growth.
For more information about investing in Puerto Rico visit our web site or contact us.
Excerpts from the 2020 ULI | Heitman Report.
ULI partnered with Heitman, a global real estate investment management firm, to assess the potential impacts of climate change on the long-term viability of real estate assets. Derived from a series of interviews with leading institutional investors, investment managers, investment consultants and others, the report provides members with an inside look at how real estate investors are factoring climate risk into their investment decision-making and management processes.
See full report at : https://knowledge.uli.org/en/Reports/Research%20Reports/2020/-/media/b81db4bbc77845f7834f24b0e974dd7a.ashx
ULI publishes this updated report amid a global pandemic and economic uncertainty. For many, it may feel as if the priority of addressing climate change is dissipating as we face the immediate challenge of COVID-19. Although it is still too early to draw conclusions about the long-term implications of COVID-19 for our cities and the real estate industry, such a wide-scale humanitarian crisis throws the connections between environmental, social, and governance (ESG) issues and our economies into sharper focus.
However, just as the coronavirus has exposed many weaknesses, it has also shown us that we have the ability to adapt and change our behaviors quickly and radically.
Globally, most major economic hubs are in coastal, river delta, or other high-risk areas. These locations present many advantages, relating to connectivity, trade, quality of life and placemaking. These cities house more than half the global population, with much higher percentages of residents in some regions. About 80 percent of U.S. residents live in cities, for example, 39 percent of the European Union population lives in metro areas with 1 million or more inhabitants.
In 2020 (as of October 7), there have been 16 weather/climate disaster events with losses exceeding $1 billion each to affect the United States. These events included 1 drought event, 11 severe storm events, 3 tropical cyclone events, and 1 wildfire event. Overall, these events resulted in the deaths of 188 people and had significant economic effects on the areas impacted. The 1980–2019 annual average is 6.6 events (CPI-adjusted); the annual average for the most recent 5 years (2015–2019) is 13.8 events (CPI-adjusted).
Many of the most economically powerful coastal cities face significant climate risk. However, these cities offer some of the most attractive investment environments, meaning that the risk is worth the return. “We have a dilemma that some of the most attractive markets are also markets that are affected more by weather-related risks,” noted one real estate investment manager. However, a few investors indicated that they are beginning to suspend acquisitions or take steps to reduce their real estate footprint in city markets where they harbor climate-risk concerns. The phases after a big disaster, according to one interviewee, were to see the market buoyed up by subsidies and insurance, followed by rebuilding and speculative demand. This short-term “sugar high” of disaster support, insurance claims, and opportunistic investment likely masks underlying negative and fiscal impacts that could be exacerbated by future climate-related events (or other shocks).
The research found a number of misleading correlations, such as flooding having a positive impact on cash solvency and fiscal health, and hurricanes increasing budget solvency. However, the current model of contingencies will not be sustainable with the expected increase in the frequency and intensity of climate change impacts, as well as slow-moving stresses such as sea-level rise, which further exaggerate the effect of peak events. In other words, a weather-related event has not yet adequately “shocked” the system of contingencies as to break it. However, the COVID-19 crisis may prove to be the ultimate shock to the system that breaks it. What happens when that “extreme event” is no longer a geographically or temporally discrete event?
“There are three big mechanisms through which costs are likely to increase going forward: one is insurance, [and] the second area is . . . tax rates and the third is cost of financing as banks start to cost the added risk.
BlackRock, the world’s largest asset manager, made headlines in January 2020 when Larry Fink, the firm’s CEO, stated in his annual letter on corporate governance that “climate change has become a defining factor in companies’ long-term prospects,” and “we are on the edge of a fundamental reshaping of finance.” The BlackRock announcement signified an increasing industry prioritization of climate change mitigation, or efforts to prevent or reduce greenhouse gas emissions.
Most interviewees also expressed overall uncertainty about future insurance prices and the likely market impacts of shifting insurance policy. In an extreme scenario, some investors envisioned a future in which properties could not qualify for insurance at all and therefore became ineligible for loans. The annual insurance pricing structure can underpredict risk for longer hold periods, as well as for the underpinning infrastructure. The approach also assumes the long-term availability of underwriting capabilities, in terms of the affordability and availability of products. If sites are unable to obtain insurance, they will not be eligible for loans, leading to major potential valuation consequences.
Long-term focus: In lay terms, catastrophe models simulate “thousands of versions of next year,” not “thousands of successive years.”
All agreed that valuation is currently lagging behind recognition of climate risk and anticipate this changing in the near future. Valuation does not incorporate climate risks because it is “backward-looking”. Models typically do not allow a user to modify future climate conditions, and there are no established best practices to apply insights from climate science to catastrophic hazard risk modeling. Valuation has become more urgent for investors considering longer time horizons. Some investors have also informally discussed properties having “expiration dates” after which they may no longer be safe or suitable for residential or business use without extensive investment in surrounding infrastructure.
Anticipating steep declines in building value because of climate impacts runs counter to how buildings are currently valued. In the current model, value is derived from the residual value of the land and structure, plus discounted cash flows over time that drive net present value and cap rates. However, if dramatic changes lead the value of the structure and land to approach zero, cap rates would change significantly, with a steep decrease in value after purchase, and would need to be offset with increased cash flow and profitability to maintain net present value.
Several discussed efforts to design risk mitigation strategies for vulnerable assets and price these costs into deals. Some also spoke about resilient design as presenting opportunities to differentiate assets and enhance value. For example, one interviewee said they were exploring opportunities to create a “resilience zone” for entire neighborhoods.
Parametric insurance, where insurance payouts are linked to when predefined event parameters such as extreme weather events are met or exceeded, is an emerging option. Industry leaders note that parametric insurance may become more widespread, but it is not an appropriate solution for all scenarios. The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is one example of a regional fund. #heitman
AG&T is committed to being part of the climate solution. AG&T joined over a thousand leaders from local governments, businesses, universities, and other institutions across the country as part of the “America Is All In” joint statement. To learn more click here.
For decades, sustainability was often viewed as an aspirational goal—a desirable feature that enhanced a project’s brand, improved public perception, or satisfied environmental objectives.
Today, that conversation has fundamentally changed.
Across the Caribbean, resilience has evolved from an environmental initiative into one of the most important drivers of long-term financial performance.
Developers, institutional investors, lenders, insurers, hotel operators, and governments increasingly recognize that resilient design is no longer optional. It is becoming a prerequisite for preserving value, attracting capital, reducing operating risk, and ensuring that hospitality assets remain competitive for generations.
At AG&T, we have long believed that the future of Caribbean development lies at the intersection of economics, engineering, hospitality, and environmental stewardship.
That belief inspired one of the Urban Land Institute Caribbean Council’s most forward-looking conversations: Returns on Resilience, bringing together internationally recognized experts from finance, architecture, engineering, and sustainability to examine how resilient design is reshaping real estate investment.
The discussion featured:
Jan Raes, Global Sustainability Advisor, ABN AMRO
Esteban Biondi, Associate Principal, ATM
Koen Olthuis, Co-Founder, Waterstudio.NL
Adam Greenfader, Managing Partner, AG&T
Together, the panel explored a fundamental question:
Can resilience create superior investment returns?
The answer was a resounding yes.
Institutional capital has undergone a profound transformation over the past decade.
Major pension funds, sovereign wealth funds, insurance companies, banks, and private equity firms increasingly evaluate climate resilience alongside traditional underwriting metrics such as location, occupancy, and projected cash flow.
Today’s investors ask very different questions:
Can this property withstand stronger hurricanes?
How will sea level rise affect long-term value?
What is the projected cost of insurance over the next twenty years?
How resilient are the building systems?
Can the project maintain operations following a major storm?
Does the development reduce long-term environmental risk?
Increasingly, these answers influence financing decisions, insurance pricing, investment returns, and exit valuations.
Resilience has become a core component of fiduciary responsibility.
The discussion emphasized that resilient development should not be viewed simply as an added construction expense.
It should be viewed as an investment.
Resilient projects often benefit from:
Lower long-term operating costs
Reduced insurance premiums
Improved access to financing
Stronger lender confidence
Higher institutional investor interest
Faster post-storm recovery
Greater asset liquidity
Improved guest confidence
Longer building life cycles
Enhanced long-term property values
For hospitality assets in particular, every day a hotel remains operational after a major storm protects revenue, employees, guest relationships, and brand reputation.
The financial value of remaining open can far exceed the incremental cost of building resiliently from the beginning.
The conversation also challenged a common misconception.
Sustainability is not simply about achieving certifications or incorporating environmentally friendly materials.
True resilience requires a comprehensive approach that integrates architecture, engineering, infrastructure, energy systems, coastal protection, water management, emergency planning, and long-term operational strategy.
Developments must be designed not only to survive future climate events—but to continue operating through them.
That shift represents a new philosophy for Caribbean development.
Rather than designing for average conditions, projects must increasingly be designed for future conditions.
Perhaps one of the most fascinating discussions centered on aquatic architecture and the remarkable experience of the Netherlands.
For more than a thousand years, the Dutch have lived with water rather than attempting to conquer it.
Long before climate resilience became a global priority, Dutch engineers, planners, and architects developed sophisticated strategies for flood management, floating communities, adaptive infrastructure, and integrated water systems.
Companies such as Waterstudio.NL have transformed centuries of accumulated knowledge into innovative approaches that are now being implemented around the world.
For island nations throughout the Caribbean, these lessons are becoming increasingly relevant.
As sea levels rise and coastal environments evolve, the question is no longer whether architecture should respond to water.
It is how quickly we are prepared to embrace that reality.
Aquatic architecture is not science fiction.
It represents an evolution in urban planning that includes floating homes, floating hotels, adaptive marinas, amphibious structures, floating public spaces, and waterfront communities designed to work in harmony with changing environmental conditions.
For the Caribbean, where coastlines define both our identity and our economy, these ideas deserve serious consideration.
Hospitality has always depended upon extraordinary locations.
Many of the world’s finest resorts occupy beaches, bays, lagoons, and waterfronts that also happen to be among the most environmentally vulnerable landscapes on earth.
Protecting these destinations requires more than stronger buildings.
It requires integrated planning that combines resilient architecture, renewable energy, advanced water management, nature-based coastal defenses, intelligent infrastructure, and thoughtful master planning.
The most successful hospitality destinations of the future will likely be those that embrace resilience not as a regulatory requirement, but as a defining competitive advantage.
Guests increasingly value destinations that demonstrate environmental leadership.
Investors increasingly reward projects that reduce long-term climate risk.
Lenders increasingly recognize resilience as an indicator of stronger underwriting.
Insurance providers increasingly differentiate projects based upon mitigation strategies.
The market is beginning to place a measurable premium on resilience.
At AG&T, resilience has never been viewed as a niche topic.
It is central to how we think about Caribbean development.
Throughout our work across Puerto Rico, Sint Maarten, and the wider Caribbean, we continue to advocate for development strategies that combine world-class hospitality with resilient infrastructure, renewable energy, regenerative design, and innovative coastal planning.
Our collaboration with global experts—from Dutch aquatic architects and sustainability advisors to institutional investors and hospitality leaders—reflects our belief that the Caribbean has an opportunity not simply to adapt to climate change, but to become a global laboratory for resilient tourism and coastal development.
The islands have always been defined by their relationship with the sea.
The next generation of Caribbean hospitality will be defined by how intelligently we choose to live with it.
Designing sustainably is no longer about branding.
It is about building stronger businesses, protecting communities, preserving irreplaceable destinations, and creating hospitality assets capable of thriving for generations to come.
For the Caribbean, resilience is no longer simply good environmental policy.
It is good economics.
The panelists :
The ULI Webinar has an incredible array of information crammed into 90 minutes and it gives a great snapshot for the many initiatives being introduced and planned to help the Puerto Rican economy and create more quality jobs. If I had to some it up in three words, Mo is back. Mo of course being momentum.
Each of the speakers brought a different perspective. Congresswoman Gonzalez Colon noted her primary mission is the reconstruction of the Island and to shephard the many supporting bills recently introduced in the US Congress. Former Governor Luis Fortuno brought an informed Wash DC think tank perspective, Adam Greenfader is one of Puerto Rico´s most passionate advocates, Andy Carlson of JLL (Jones Lang LaSalle) brings experienced commercial insights from the world´s second largest public brokerage firm, Dr Deusch stated his case for the reasons he brought his Swiss/German manufacturing business to Puerto Rico because of a need for precision and reliability, while Noel Zamot has a finger on the ethical pulse of developing new business in Puerto Rico.
The conversations were upbeat and positive. For instance, Congresswoman Colon made a presentation on MMEDS which was introduced last month to Congress under the bill H.R. 7527. This bill provides tax incentives and tax credits for companies creating manufacturing plants and jobs in economically distressed areas in the US and its territories. The criteria for distressed is even stricter than the recent Opportunity Zone legislation passed in late 2017. When the Congresswoman showed the MMEDS qualifying maps there were smaller areas in very non desirable locations in the US whereas Puerto Rico literally had a much larger proportional area in some desirable locations. And she stated very clearly that MMEDS is one of the very few legislative items that is drawing bi-partisan support from both sides of the aisle.
The entire panel then weighed in on the competitive advantages that Puerto Rico has when competing with the mainland U.S. including much lower labor costs by as much as 60% lower in some cases, an experienced manufacturing labor force going back 100 years, the University of Puerto Rico at Mayaguez which is a top 10% engineering school for the entire U.S. and which is very much geared to provide the engineering and chemistry talent to support Puerto Rico´s manufacturing base. That even today five of the top ten selling drugs internationally are produced in Puerto Rico and 12 of the top 20 pharmaceutical companies have plants in Puerto Rico. Luis Fortuno noted that Puerto Rico had more than $40 billion USD in pharmaceutical exports in 2019 but has the capacity to increase this substantially. The panel noted that some closed down plants are almost in turnkey conditions should manufacturers wish to return or expand capacity. It would not take much. Maybe a recession of the Jones Act, or at least an exemption for an extended period of time, might be the necessary catalyst. There are some interesting new developments on this front as was evidenced last week by Hawaii noting that 85% of their informed populace is all for rescinding the Jones Act as it costs that Island 1.2 billion USD in additional transportation and cost of goods fees.
Progress is being made on seeking some type of exemption under the taxing provisions of GILTI as it adds a 10%+ tax on profits for CFCs (controlled foreign corporations) which unfortunately applies to the US territories since the do not fall under the IRC (Internal Revenue Code). On May 1, 2020, Congresswoman Stacey E. Plasket, representing the US Virgin Islands, filed Bill HR 6648 – the Territorial Economic Recovery Act, that if becomes law, it will exclude our territories from much or all of the GILTI taxation, under certain provisions.
On April 3, 2020, Congresswoman Jennifer González, resident Commissioner for Puerto Rico, introduced Bill HR 6643, the Securing National Supply Chain Act of 2020, to provide various tax credits to Economically Distressed Zones, including a tax credit on the amount of wages paid by an employer to employees in such a zone. The proposal has some overlap with HR 7527 noted above.
President Trump’s Special Representative for Puerto Rico’s Disaster Recovery, Rear Admiral Peter Brown, lead two delegations to Puerto Rico in August 2020, the last visit being last week. I am told the trip was very successful as a big priority was to visit and understand the many advantages of pharmaceutical manufacturing in Puerto Rico. AG&T is committed to bringing our network top information and access to our industry’s leaders.
At the height of the COVID-19 pandemic, uncertainty gripped the global hospitality industry.
Hotels throughout the Caribbean stood nearly empty. International travel had come to an unprecedented halt. Lenders were reassessing risk, investment activity had slowed dramatically, and developers around the world were asking the same question:
What does the future of hospitality look like?
To help answer that question, AG&T and the Urban Land Institute (ULI) Caribbean Roundtable hosted a timely conversation with Nicholas Hecker, Executive Managing Director and Chief Investment Officer of Sculptor Real Estate, moderated by Adam Greenfader, Chairman of AG&T and former Chair of the ULI Caribbean Council.
The discussion provided a rare institutional perspective during one of the most uncertain periods the hospitality industry had ever experienced.
While much of the industry focused on immediate operational challenges, the conversation explored a much broader question:
How do long-term institutional investors evaluate hospitality during periods of extreme uncertainty?
Nicholas Hecker shared insights into how sophisticated investment managers distinguish between short-term market disruption and long-term value creation. Rather than reacting solely to the immediate crisis, institutional investors continued to evaluate demographic trends, destination quality, replacement costs, barriers to entry, and the long-term fundamentals supporting hospitality investment.
The message was clear.
The pandemic represented an extraordinary disruption—but not the end of the hospitality industry.
The Caribbean entered the pandemic with some of the strongest tourism fundamentals in the world.
Exceptional natural assets, limited beachfront supply, growing global demand for experiential travel, and proximity to North American markets continued to make the region attractive from a long-term investment perspective.
The discussion emphasized that while transaction activity had slowed, high-quality destinations would likely recover first as travelers increasingly sought open-air environments, wellness experiences, and lower-density resort communities.
Many of those observations proved remarkably accurate.
In the years that followed, the Caribbean experienced record tourism recovery, rising average daily room rates, increased luxury development, and renewed institutional investment.
Since that conversation, Sculptor Real Estate has continued to expand one of the world’s leading alternative real estate investment platforms.
Today, the firm has raised approximately $14.5 billion in capital across opportunistic equity, credit, and long-term investment strategies, with investments representing more than $30 billion in enterprise value across hospitality, resorts, gaming, marinas, specialty real estate, infrastructure, and other alternative asset classes.
The firm’s continued focus on experiential real estate reflects growing institutional confidence in sectors closely aligned with the Caribbean’s long-term strengths.
One of AG&T’s objectives throughout the pandemic was to ensure that Caribbean developers, investors, lenders, and hospitality professionals remained connected to the world’s leading thinkers.
Rather than allowing uncertainty to halt the conversation, AG&T organized a series of virtual discussions featuring executives from global investment firms, hotel brands, multilateral development banks, tourism organizations, lenders, and government agencies.
These conversations helped industry participants better understand how global capital was responding to unprecedented market conditions while providing valuable insights into the recovery that would eventually follow.
Viewed today, this discussion serves as an important historical snapshot. It captured institutional thinking at one of the most uncertain moments in modern hospitality history.
More importantly, it demonstrated that experienced investors were already looking beyond the immediate crisis and focusing on the long-term fundamentals that continue to drive Caribbean tourism today.
For AG&T, the conversation reinforced a principle that has guided our work for more than three decades: Markets experience cycles. Hospitality evolves. Capital adapts.
But exceptional destinations supported by thoughtful planning, resilient infrastructure, and long-term vision continue to attract investment.
The Caribbean’s recovery over the past several years has validated that perspective—and positioned the region for a new generation of hospitality investment.
During the unprecedented disruption of the COVID-19 pandemic, Caribbean financial institutions faced one of the most significant challenges in their history. With tourism at a standstill, hospitality assets under pressure, and uncertainty across virtually every sector of the regional economy, banks were required to move beyond traditional lending practices and work collaboratively with borrowers to preserve long-term value.
In this exclusive interview, Isabel de Caires of FirstCaribbean International Bank shares how regional lenders responded during the crisis, implementing payment deferrals, restructuring loans, reducing costs, and working alongside clients to help businesses navigate an extraordinary period of uncertainty.
For AG&T, these conversations reinforced the importance of maintaining strong relationships throughout the Caribbean banking community. Over more than three decades, we have worked closely with regional and international financial institutions, giving our clients valuable insight into evolving lending practices, capital markets, and financing strategies across multiple jurisdictions.
Whether structuring development financing, introducing lending partners, or advising on capital formation, AG&T’s longstanding relationships with Caribbean financial institutions provide clients with access to market intelligence that extends well beyond individual transactions.
Watch the interview with Isabel de Caires to learn how Caribbean banks responded during one of the region’s most challenging periods and how those lessons continue to influence lending and development today.
As the COVID-19 pandemic swept across the globe, few industries were impacted more dramatically than hospitality and tourism. Borders closed, airlines grounded fleets, conferences were canceled, and hotels that once operated at record occupancies suddenly found themselves with little to no demand.
For Latin America and the Caribbean—regions where tourism serves as a critical engine of economic growth, employment, and foreign investment—the implications were profound.
To better understand the challenges facing the industry and the opportunities that could emerge from the crisis, the Urban Land Institute Caribbean Council hosted a conversation between Rogerio Basso, Head of Tourism at IDB Invest, and Adam Greenfader, Chair of the ULI Caribbean Council and Managing Partner of AG&T.
While much of the discussion focused on the immediate impact of the pandemic, the conversation ultimately became a broader examination of innovation, leadership, capital markets, and the future evolution of hotel management throughout Latin America and the Caribbean.
Before the pandemic, hospitality was experiencing one of the strongest periods in its history.
Global travel demand continued to expand, international tourism arrivals were reaching record levels, and investors remained highly attracted to hospitality assets throughout the Caribbean and Latin America. Major hotel brands were expanding aggressively, new resort developments were under construction, and institutional capital was increasingly targeting hospitality as a long-term growth sector.
Destinations throughout the Caribbean benefited from growing airlift, rising visitor expenditures, and increasing demand for experiential travel, wellness tourism, luxury resorts, and branded residential products.
According to Rogerio Basso, the industry’s fundamentals entering 2020 were exceptionally strong.
What followed was not a traditional economic downturn or cyclical correction. It was a sudden and complete interruption of global mobility.
The hospitality industry has weathered numerous crises over the past several decades, including recessions, geopolitical conflicts, natural disasters, and health emergencies.
COVID-19 was fundamentally different.
Unlike previous downturns that impacted specific regions or market segments, the pandemic affected virtually every tourism destination simultaneously. Hotels were not competing for reduced demand; in many cases, demand simply disappeared.
For owners and operators, the challenge was unprecedented. Revenue declined almost immediately while many fixed costs remained. Management teams were forced to make difficult decisions regarding staffing, operations, capital expenditures, and long-term strategy.
Yet amid the disruption, Rogerio emphasized that hospitality leaders could not simply focus on survival. They also needed to prepare for recovery.
One of the most important themes that emerged during the discussion was the role of innovation in hotel management.
The pandemic accelerated trends that had already begun transforming hospitality, forcing operators to adopt new technologies and rethink traditional business models at a much faster pace.
Hotels across the region began implementing:
Contactless check-in and check-out systems
Mobile guest communication platforms
Digital concierge services
Enhanced health and sanitation protocols
Flexible staffing models
Advanced revenue management systems
Data-driven guest personalization
Hybrid meeting and conference capabilities
Expanded outdoor experiences and wellness programming
Many of these initiatives were initially introduced as crisis-response measures. However, they quickly evolved into permanent operational improvements that enhanced both efficiency and guest satisfaction.
The discussion highlighted an important reality: innovation is often accelerated during periods of disruption.
The hospitality companies that adapted fastest were frequently the ones best positioned to capture demand when travel resumed.
Perhaps one of the most significant lessons from the pandemic was the changing role of hotel management itself.
Historically, hotel operators focused primarily on maximizing occupancy, controlling expenses, and maintaining service standards. Today’s hospitality leaders must balance a much broader range of responsibilities.
Modern hotel management increasingly requires expertise in:
Technology integration
Sustainability initiatives
Wellness programming
Community engagement
The panel discussed how successful operators would need to become more agile, more data-driven, and more responsive to changing guest expectations than ever before.
Hotels are no longer simply places to stay. They are becoming platforms that integrate hospitality, wellness, residential living, experiences, technology, and community.
This transformation is particularly relevant in the Caribbean, where travelers increasingly seek authentic experiences, environmental stewardship, cultural immersion, and personalized service.
A unique aspect of the discussion focused on the role of multilateral development banks (MDBs) in supporting tourism and hospitality during times of crisis.
As Head of Tourism at IDB Invest, Rogerio Basso oversees initiatives that provide financing solutions throughout Latin America and the Caribbean. These include debt, mezzanine financing, equity investments, and other instruments designed to support sustainable development.
Multilateral institutions play a critical role because they often provide patient capital during periods when traditional financing becomes scarce.
Beyond capital, organizations such as IDB Invest contribute technical expertise, environmental standards, governance frameworks, sustainability initiatives, and strategic guidance that strengthen projects over the long term.
The discussion emphasized that recovery would require collaboration among governments, hotel operators, developers, lenders, investors, and development finance institutions.
No single stakeholder could solve the challenges alone.
Rogerio outlined several priorities that hospitality companies should consider when navigating periods of uncertainty:
Cash management becomes paramount during periods of disruption. Organizations must maintain financial flexibility to withstand market volatility while preserving their ability to invest when opportunities emerge.
The temptation during a crisis is to cut spending across all areas. However, technology, operational improvements, and guest experience enhancements often generate long-term competitive advantages that outlast the crisis itself.
While short-term conditions may fluctuate, the fundamental drivers of tourism—human connection, exploration, business travel, leisure experiences, and cultural exchange—remain intact.
The strongest organizations maintain a long-term perspective even during periods of uncertainty.
Several years later, many of the observations discussed during this ULI Caribbean Conversation proved remarkably accurate.
Tourism throughout the Caribbean and Latin America rebounded faster than many analysts expected. Luxury travel accelerated. Wellness tourism expanded. Branded residences became one of the industry’s fastest-growing segments. Technology adoption increased dramatically. Investors returned to the sector with renewed confidence.
Most importantly, hospitality emerged stronger, more resilient, and more innovative than before.
At AG&T, we believe that some of the most important conversations occur during periods of uncertainty. Throughout the pandemic and beyond, we partnered with the Urban Land Institute Caribbean Council to bring together industry leaders, investors, developers, hotel operators, economists, and policymakers to discuss the future of Caribbean real estate and hospitality.
Our conversation with Rogerio Basso was more than a discussion about crisis management. It was a dialogue about leadership, innovation, and the future of tourism in Latin America and the Caribbean. The lessons remain relevant today.
Hospitality is no longer defined solely by buildings, brands, or locations. It is increasingly defined by adaptability, technology, sustainability, and the ability to create meaningful experiences for guests. As the Caribbean continues its hospitality renaissance, innovation in hotel management will remain one of the most powerful drivers of long-term success. At AG&T, we remain committed to advancing the conversations that help shape that future.
