Commercial Property Owner's Guide to Earthquake Safety
Published by the California Seismic Safety Commission (2022 Edition, SSC No. 22-01). Required reading for owners and buyers of commercial property, developed under Business & Professions Code §10147.
Earthquakes and Commercial Property
Earthquakes are inevitable in California and can be catastrophic for commercial buildings — threatening occupant safety, contents, and business continuity. This guide helps owners understand the risks, identify vulnerable building types, and meet disclosure requirements when selling commercial property.
Vulnerable Building Types
| Building Type | Weakness | Risk |
|---|---|---|
| Unreinforced masonry (URM) | Brick walls without steel reinforcement | Wall and parapet collapse |
| Soft/weak story | Open ground floor (retail, parking) lacking lateral bracing | Story collapse |
| Non-ductile concrete | Older concrete frames built before modern codes | Sudden brittle failure |
| Tilt-up concrete | Wall-to-roof connections may be inadequate | Roof separation and collapse |
| Non-structural elements | Cladding, ceilings, equipment, storage racks | Falling hazards and business disruption |
Reducing Your Risk
- Commission a seismic evaluation by a qualified structural engineer (e.g., ASCE 41 assessment).
- Retrofit URM walls, brace soft stories, and strengthen wall-to-roof connections.
- Anchor non-structural components — equipment, racks, cladding, and ceilings — to prevent falling hazards.
- Develop a business continuity and post-earthquake response plan.
Disclosure When Selling
When commercial property is sold, the seller must deliver this guide and disclose known seismic deficiencies. The property's location within an Alquist-Priolo Earthquake Fault Zone or a Seismic Hazard Zone must also be disclosed as part of applicable natural hazard disclosures. Local ordinances in some jurisdictions impose mandatory retrofit programs for specified building types.
Financial Resources
Seismic retrofits can be substantial investments, but financing may be available through commercial lenders, PACE (Property Assessed Clean Energy) programs where offered, and local incentive programs. Earthquake insurance for commercial property is available through private carriers.
Bottom Line
Older URM, soft-story, and non-ductile concrete buildings carry the greatest seismic risk. A structural evaluation identifies priorities, and sellers must disclose known deficiencies and hazard-zone status when transferring commercial property.