Marcia Minton’s Post

The push towards net zero is creating significant challenges for real estate investors, with the potential for 'stranded assets' becoming a major concern. Upgrading buildings to meet new energy and emissions standards could be prohibitively expensive, especially for lower-tier properties. While larger companies like British Land and Land Securities are making strides, the broader market remains vulnerable. Are smaller landlords and private investors prepared to tackle these climate risks? #RealEstate #NetZero #Sustainability #InvestmentRisk #CommercialProperty

Real Estate and Climate Change: Rising Pressure for Sustainability The real estate industry is facing a sustainability challenge. Climate change is driving regulations, investor demands, and consumer preferences towards greener buildings. Here's a breakdown of the key forces shaping the future of real estate: **  Regulatory Push: The EU, for example, has introduced frameworks like the EU Taxonomy and CSRD, mandating sustainability reporting and disclosures for real estate assets. **   Investor Prioritisation: Investors are increasingly factoring in carbon risks and opportunities, favoring low-carbon buildings and businesses aligned with climate goals. **   Consumer and Employee Demands: People are seeking energy-efficient homes and workplaces. Sustainable buildings can offer rental premiums and attract talent. The Bottom Line: Decarbonisation is becoming essential for real estate players. Inaction could lead to higher insurance costs and stranded assets. By taking proactive measures, real estate businesses can navigate the changing landscape and thrive in a sustainable future. Contact Us : 📞 01206 799994 (Essex. East Anglia) 📞 0800 074 3030 (Norwich. East Anglia) ✉️ sales@blueflame.co.uk 🌐 https://lnkd.in/dAJfC8s 📞 01462 480817 (London & Home Counties) ✉️ commercial@blueflame.co.uk 🌐 https://lnkd.in/d5Ym4V6 #sustainability #sustainable #realestatelife #realestateinvesting #realestateinvestor #greenenergy #building #renewableenergy #climatechange #ESG #business #businessowner #commercial #commercialproperty #commercialrealestate #smarthome #heating #blueflame #blueflamecommercial #collaboration #supportlocal #supportlocalbusiness #engineering #engineer #investmentproperty #invest #investmentopportunity #carbonremoval #greenenergy #research

Yet another helpful observation from Mark Carney which is what we are all seeing and advising. Happily, MAPP, with its blend of property, sustainability, and refurbishment experience under one roof, is the best place to help anyone with "stranded" assets in the UK. Even if it just means getting your head around this challenge and the overengineered jargon(s) associated with this space, keeping it simple and progressive is our approach. #sustainability #realestate #sustainableinvestment

The Risks of Stranded Assets in Real Estate Are Real – and Growing! 📈 Mark Carney's recent comments on the future of commercial real estate highlight the looming challenge: older buildings that fail to adapt to new energy efficiency regulations face the risk of becoming stranded assets. 💡 Key takeaways from the article: 1️⃣ Stranded assets aren't just limited to fossil fuels; commercial real estate is vulnerable, with many older buildings struggling to meet net-zero targets. 2️⃣ Investors face a double hit - falling property values and increased pressure to invest in costly upgrades. 3️⃣ European real estate needs a 30% boost in annual capital spending just to catch up with Paris Agreement targets. 4️⃣ Many commercial buildings missed energy efficiency targets last year, and future non-compliance could result in stricter penalties. 5️⃣ The stakes are high, and there is no guarantee that policy deadlines will shift or ease (as some may be implicitly or explicitly hoping). You can read the full Financial Times article here: https://lnkd.in/gJJmDJwg 🏗️ Retrofit vs. New Build: A Crucial Decision for the Sector As pressure mounts, assessing whether to retrofit existing structures or pursue new builds has never been more critical. Retrofitting can help preserve embodied carbon and often proves more cost-effective, particularly when considering the environmental impact of demolishing and rebuilding. However, it requires a detailed understanding of each building’s potential to meet future performance standards. At Preoptima, we’re helping property stakeholders navigate this decision by offering the tools to compare the whole life carbon impact of new builds vs. retrofits. By making these insights accessible early in the design process, we’re empowering owners and investors to make informed choices that protect assets from becoming stranded, while supporting broader sustainability goals. ➡️ Learn more about how we’re enabling carbon optioneering here: https://lnkd.in/eC3DpS9e #StrandedAssets #SustainableRealEstate #NetZero #CarbonOptioneering #BuildingRetrofit #RealEstateDevelopment #WholeLifeCarbon

The UK Net Zero Carbon Buildings Standard (NZCBS) represents a monumental shift in the UK's commercial real estate (CRE) sector. By providing a clear, consistent framework for measuring and achieving net-zero carbon in buildings, the Standard offers CRE stakeholders a roadmap to future-proof their portfolios. However, the cost of inaction could be staggering, both from a financial and reputational perspective. The Benefits for CRE Stakeholders For investors, developers, and occupiers, compliance with the NZCBS presents a unique opportunity to enhance asset value and operational efficiency. Buildings that adhere to net-zero carbon principles will benefit from reduced energy costs, improved occupancy rates, and higher tenant satisfaction, particularly as sustainability becomes a priority for businesses seeking to meet their own ESG goals. Additionally, the Standard helps align real estate portfolios with the UK’s legally binding targets to cut carbon emissions by 78% by 2035 and achieve net-zero by 2050, offering a long-term hedge against regulatory risks. Furthermore, the Standard simplifies the verification process, allowing stakeholders to confidently market their assets as net-zero aligned, which attracts green financing and capital. In a landscape where investors and lenders increasingly prioritise sustainability, this alignment is key to accessing favorable investment terms and funding. Preferred Outcomes Compliance with the Standard leads to healthier, more efficient buildings. It fosters industry-wide collaboration among architects, engineers, and developers, driving innovation in construction methods and materials. Stakeholders can expect robust energy performance, avoidance of fossil fuels, and a strong push toward renewable energy integration, as mandated by the NZCBS. The Cost of Inaction Failure to comply could result in significant financial and reputational damage. As the UK strengthens its regulatory frameworks surrounding climate goals, non-compliant buildings will face increasing operational costs, depreciating asset values, and dwindling investor interest. Additionally, businesses that neglect these standards may suffer from reputational harm, as tenants, consumers, and stakeholders demand more accountability in sustainability efforts. Inaction not only risks these financial impacts but also jeopardizes the UK's broader climate goals. CRE stakeholders must recognise that investing in sustainability now is a necessary step toward safeguarding long-term success. #NetZeroCarbon #UK2050Targets #CRE #SustainableBuildings #Decarbonization #GreenBuildings #ESG

https://lnkd.in/eeuVKEAQ Our own Zach Allen was part of this very interesting ULI panel discussing the various sustainability incentives available to real estate developers. Read about it here #sustainabilty #UrbanLandInstitute

The recent report ‘𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠 𝐔𝐒 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐃𝐞𝐜𝐚𝐫𝐛𝐨𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧’ by RMI presents some interesting findings:  ● Buildings contribute to 23% of the US carbon emissions;  ● Single-family homes are the largest emitters within the building sector, at 58%; Commercial buildings follow at 37%;  ● The annual rate of addition or renovation to the existing building stock is less than 1%;  ● Green capital flows are nowhere near adequate to what is required to decarbonize the sector; Among other important conclusions, RMI shares that: Investors, lenders, and regulators seeking to decarbonize the real estate sector should target the retrofit of existing buildings; Decarbonizing single-family homes is critically important to reaching US climate goals. #decarbonization #carbonemission #carbon #emission #realestate #investors #decarbonize #investing #engagement #GREEN #ESG

A worthwhile read on how #realestate is not doing as much as it should to lower its #carbonemissions. This is worrisome. “Experts Bisnow interviewed identified myriad reasons for the lack of action by big real estate firms: #sustainability slipping down the agenda in the wake of a market downturn, a lack of any immediate financial imperative, and regulation creating increased burdens that actually hinder rather than help the push for decarbonization.” https://lnkd.in/esrUM5H5

With concerns about climate change, investor responses, and regulation of how commercial real estate properties handle carbon emissions, JLL suggests the CRE industry take building performance standards, or BPS, seriously. https://lnkd.in/gSqRuJYG #ccim #ccimwa #climatechange #investors #regulations #commercialrealestate #carbonemissions #BPS #JLL

“It’s not always easy to build green, and it’s even harder to infuse environmental, social and governance (ESG) elements into the renovation of an existing commercial property. But developers, builders and asset owners that ignore ESG do so at great potential risk to their bottom lines.” A good read for those in CRE featuring insights from #renedemers https://lnkd.in/gan3DscE #esgnews #crenews #sustainablerealestate #greenbuild #commercialrealestate