Without a clear recognition of net-zero attributes in real estate valuations, the financial incentives that are an inherent part of any successful transition are unlikely to be available.

At first glance, the solution seems obvious. Real estate valuers should allow for net-zero issues in their assessments. They will then penalise assets that are ill-prepared for prospective changes in both occupier requirements and legislation. However, this assumes that valuers have a definitive role in the formation of pricing decisions. In reality, their core role is to analyse, interpret and reflect market pricing.

This means that if market pricing is based on a flawed assessment of the future cashflows likely to be derived from an asset — for example, by omit-ting the potential impact of climate change–related regulations — it is not part of a valuer’s remit to “correct” the calculations and produce a “fair” value. This does not mean, however, that valuers are unab