Green building strategies are quickly becoming a priority for real estate decision makers in 2025, as the built environment accounts for up to 42 percent of global annual emissions. Further, with office supply predicted to drop by 73 percent amid a tightening market and the impacts of climate change, upgrading environmental performance offers a unique opportunity to revitalize at-risk properties. Our research found that two in three commercial real estate leaders will spend more on climate resilience by 2030, while 45 percent will select buildings resilient to climate events. This is especially relevant as across markets like the United States, more than half of both industrial inventory and office space sit in the top 10 markets most exposed to climate risk.
As a result of this exposure to climate risk, real estate insurance premiums have also risen drastically in the last five years, along with anticipated continued increases in both global energy and electricity demand and