Cleaner Tech
CRE Market Woes Mount as Assets Get ‘Stranded’ by CO2 Rules
- Brookfield unit says industry ‘very aware of stranded assets’
- EU is forcing investors to take climate risk into account
Source: Bloomberg
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As if the commercial real estate market weren’t in enough trouble already, there’s a new risk lurking in property portfolios.
Real estate companies are facing a major blow to asset valuations, as evolving European requirements drive investors and bankers to cut their exposure to buildings with a big carbon footprint. The issue has increased the possibility that property owners’ assets will end up stranded, devalued by the impact of climate regulations.