Report: Climate Change Risks Off-Coast Real Estate Investments



DURHAM – Real estate investments are particularly at risk of climate risk, as the impact of climate damage from rising sea levels and storms along the coast is projected to cost cities the same, according to a new report, co-authored with the Climate Office. $ 1 trillion a year by 2050.

“As climate risk assessment and reporting becomes mandatory and widespread, the ability to accurately and comprehensively understand and assess climate risks will be critical and provide a significant strategic advantage,” says the report from Climate Services and partner Nuveen Real Estate.

One takeaway: protecting green spaces in urban municipalities can significantly reduce the risk of extreme heat.

There is a physical risk, find the authors of the report, or risks that directly affect assets and real estate markets. There are also risks of transition, especially changes in policy or climate perception, that can affect investment decisions or property valuations.

The authors note that climate risk assessment is important for real estate investors, as the United Nations Framework Convention on Climate Change (UNFCCC) estimates that by 2070 there will be 35 trillion dollars in real estate assets may be at risk.

Durham Climate Service adds two scientists, develops climate risk assessment platform

The authors describe the potential impact on the rental and multi-unit commercial real estate markets, arguing that, according to previous research, climate-related gentrification could change the makeup of many regions of the United States and the world.

The theory is that as climate-related changes, be it sea level change or increased severe storms or whatever, continue or accelerate, these changes are likely to cause migration from low-lying regions to high-altitude areas, which the researchers call climate gentrification

BUT report Harvard University’s Joint Center for Housing Research estimates that nearly 11 million tenants in the United States, or one in four renter households, spent more than 50% of their income on housing in 2018.

Addressing climate risks across businesses, buildings and real estate can change the way economic development is done for municipalities and state governments, as well as the way businesses approach their options and think and plan for growth and expansion. … along coastal cities and regions.

Business leaders are paying attention to climate risks, said James McMahon, CEO of the Climate Services, in his keynote speech. recent interview with WRAL TechWire.

“From my perspective, this area is growing rapidly in both demand and supply,” McMahon said.

The company raised $ 3.8 million a fundraising round earlier this year.


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