ESG & Investing
Funds in Commercial Real Estate Warn of Stranded-Asset Shock
- The increase is tied to recent passage of new green standards
- Half of fund managers surveyed say over 30% of assets stranded
Fund managers overseeing commercial real estate say significant chunks of their portfolios hold assets that can now be considered stranded due to energy requirements being rolled out in Europe.
A study published by Deepki, a data intelligence firm that focuses on energy efficiency, found that more than half of the roughly 250 European commercial real estate portfolio managers surveyed acknowledge that more than 30% of their assets are currently stranded. It referred to its findings as a “time bomb” under the CRE market.