The Impact of Climate Change on Real Estate Strategies
A new report warns that commercial real estate may suffer from climate change and calls on property owners to consider a range of adaptation strategies. The report, authored by the Urban Land Institute in partnership with Heitman, is the first of its kind to assess how climate risks can impact real estate investment locations and opportunities. While there is still debate over the existence of climate change, it’s clear that many aspects of our world are changing, from sea levels rising to a higher frequency of hurricanes and flooding in coastal areas. The consequences of these changes will inevitably affect the value of commercial real estate, requiring a shift in the industry’s long-term strategy. The most visible impacts are physical climate risks, which can cause direct damage to buildings and decrease their values. For example, the National Oceanic and Atmospheric Administration has reported that the number of extreme weather events…