Final answer:
A growing trend among building owners to reduce insurance costs is implementing sustainable practices like improved security and fire sprinkler systems, reducing moral hazard and leading to potential insurance discounts.
Step-by-step explanation:
A growing trend among building owners and property managers in the commercial and retail sectors to reduce liability and insurance costs is c) Implementing sustainable practices. By implementing practices such as improving the minimum level of security and installing advanced fire sprinkler systems, businesses can demonstrate to insurance companies a lower risk profile. Consequently, insurers may offer lower rates on property insurance, as the business presents a reduced moral hazard. This proactive approach includes regular inspections to ensure these systems are functioning correctly, which can further decrease the likelihood of incidents that might lead to claims.
Another aspect directly impacted by such measures is the overall quality and survivability of the property. Unlike scenarios where price ceilings result in landlords offering lower-quality housing due to reduced income, investing in sustainable practices can enhance property value. This approach aligns with the first rule of economics about opportunity cost; investing in the quality and sustainability of a building can result in long-term savings and reduced liability costs, outweighing the initial expenditure.