CRE

Climate risk is becoming a location decision not just an insurance or sustainability issue.For years, commercial real estate site selection has focused on questions like:How much foot traffic does the area generate?Is the population growing?What does the competitive landscape look like?Can customers and employees easily access the site?What are rents, property values, and development costs?Those factors still matter. But there is another question increasingly entering the site-selection conversation:How resilient is this location to climate-related risk?Flooding, wildfire, extreme heat, severe storms, drought, and other hazards can affect a property's operating costs, insurance, accessibility, asset value, and long-term viability. Recent CRE research shows that physical climate risks are increasingly influencing how developers, investors, lenders, owners, and tenants evaluate properties.That means climate risk is moving closer to the beginning of the real estate decision-making process when companies are deciding where to build, acquire, lease, expand, or invest.