How Climate Change Trends Affect Commercial Real Estate

Real estate investments are only as strong as their ability to withstand the force of nature. Commercial real estate development is not immune to the impact climate change is having on the Earth. Unfortunately, it is a reality that real estate and property management companies need to keep an eye on as its impact continues to increase. 

Understanding how the reduction of carbon emissions impacts commercial real estate is what we’ll be exploring more in-depth. However, without question, accelerated climate fluctuations are causing more dramatic storms as well as more extreme heat, wildfires, severe flooding, etc.

Understanding the Climate Change and Real Estate Connection

In recent years, more and more real estate investors are growing concerned with the impact climate change is having on their properties. Rising temperatures are wreaking havoc and gaining attention and solution-seeking initiatives. We’ll be looking at what exactly is happening to cause these concerns and how it connects more directly with the commercial real estate industry.

Why De-Carbonization Matters

Carbon dioxide (CO2) is the largest contributor to climate change. Because of this, we are more frequently experiencing the greenhouse effect. This is when fuel emissions trap thermal energy within the Earth’s atmosphere. When this happens, it leads to a chain reaction of different types of severe problems. It affects the ability to produce food and distribute it on a regularly timed schedule. 

Trapped thermal energy also causes extremely detrimental weather patterns. However, the goal of decarbonization is to reach carbon neutrality – the return to natural levels of CO2 before getting unnaturally raised by human technological advancements.

What this means for commercial real estate

Reducing carbon emissions is an endeavor that many commercial real estate companies are seeking to quickly implement. Architectural structures are challenged to withstand the impact of any weather-related chaos. Countless commercial real estate properties are damaged every year when hit with severe weather. Extreme flooding, raging fires, and everything in between caused by climate change impact the strength and efficacy of buildings and their foundations.

Ignoring Climate Change is Financially and Physically Disastrous

Major losses and damages are claimed each year by insurance companies when extreme weather-related disasters strike. Physical property damage is financial damage to investments and the recovery efforts required to fix it. 

Consequently, there is a greater demand among commercial real estate investors to enforce net-zero carbon emissions protocols.  More and more commercial real estate investors are committing themselves to a net-zero carbon emission facility. Local and national governments are passing laws to support the efforts made to counteract the advancement of carbon emissions. 

To ignore or take no action towards a solution is to contribute to the problem. Commercial real estate investors are encouraged to seek out solutions and partner with ideas and initiatives developed to help decarbonize the Earth.

Plaza Companies is Phoenix’s Premier Commercial Real Estate Firm

As one of the top Phoenix commercial leasing companies, Plaza Companies has partnered with a diverse range of clients with varying needs. If you are concerned with the effects of climate change on commercial real estate, we can help. There are solutions being enforced to reduce carbon emissions and we can discuss these efforts with you and what that means for your investments. We understand the ins and outs of the business and are geared towards win-win solutions. 

We keep an eye on trends that impact our clients and negatively affect their needs.  Our team of experts ensures our clients’ highest standards are met. We provide customized commercial real estate services designed to create strong ROI. 

Contact us today to learn more about our brokerage services.


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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With over 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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