Property woes mount as assets get ‘stranded’ by new carbon rules

As if the commercial real estate market was not in enough trouble already, there’s a new risk lurking in property portfolios.

Real estate companies are facing a major blow to asset valuations, as evolving European requirements drive investors and bankers to cut their exposure to buildings with a big carbon footprint. The issue has increased the possibility that property owners’ assets will end up stranded, devalued by the impact of climate regulations.

Bloomberg