Changing legislation, contractual obligations and stakeholder expectations are impacting commercial real estate investors with new types of investment risk. The business as usual approach is no longer sufficient to compete in these changing times.

Non-resilient office buildings are starting to experience reduced demand from occupiers, investors, lenders and insurers. Over time this results in value destruction, which is exacerbated by increased vacancy, investment downgrading and potentially significant regeneration costs simply to remain compliant.

To successfully navigate these challenges, a robust strategy focussed on sustainability, occupier well being and stakeholder transparency is required.  Otherwise office assets can quickly become stranded or obsolete.

However, with the right approach, these risks also present a significant investment opportunity.