Research reports
Analyzing the Impact of
Climate Change on
Commercial Real Estate
Analyzing the impact of climate
change on commercial real
estate values
February 2025
ESG Researchers
PrincipalResearcher
Hong
Young HoAnalyzing the Impact of
Climate Change on
Commercial Real Estate
Hong, Young Ho
ESG Researchers
This study a i m s to systematically analyze the impact of climate
change on the commercial real estate market. It examines in depth
how various factors such as natural hazards, sea level rise,
temperature rise, and extreme weather events caused by climate
change affect the valuation a n d market behavior of commercial real
estate. In particular, physical risks (such as natural disasters),
transitional risks (such as climate change), and reputational risks (such
as social responsibility and ESG criteria) are comprehensively
analyzed to provide real estate investors and policymakers with a
substantial strategicresource.
The study utilized regional climate change data to compare the
impact of climate change on real estate markets in specific regions.
The study p r o v i d e s a basis for forecasting the long-term value
changes of commercial real estate and formulating sustainable
investment strategies in response to climate change. I t also
identifies various responses t o c l i m a t e change through expert
interviews and c a s e a n a l y s i s , a n d makes p o l i c y
r e c o m m e n d a t i o n s based on these, contributing t ostrengthening the resilience and sustainability of the commercial
r e a l e s t a t e market.
Topics: climate change, commercial real estate, sustainable
development, physical risk, transitional risk, reputationalrisk, ESG
criteria, ESG standards木 TU
I . . ron ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙. 1
1 . Background of the study ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1
2. Purpose and importance of the study ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙2
3. Scope and Methodology of the Study∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙3
II . . ron∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙. 5
1 . Climate Change and the Commercial Real Estate Market ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙5.
1) Definition and main causes of climate change∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙5
2) The direct impact of climate change on the real estate market ∙∙∙∙∙∙∙∙∙∙∙6
3) The Indirect Impacts of Climate Change on Commercial Real Estate 8
(1) Transitional Risks∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙8
(2) Reputational Risks ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙9
4) A Case Study of Climate Change's Impact on the Commercial Real
Estate Market1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙0
(1) For coastal cities ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 0
(2) Energy Efficiency in Heat Waves and Dry Weather∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 1
( 3) Sustainable development practices ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 2
2. How Climate Change Will Affect Commercial Real Estate Values 12
1) Phys ical Risks 1∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙3
( 1 ) Flooding and sea level rise∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 3
(2) Heat waves and cooling costs for buildings∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 3(3) Other natural disasters (storms, high winds, etc.)∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 3
2) Trans itional Risks 1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙4
( 1 ) Policy changes and legislation∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 4
(2) Changes in market demand (increased demand for green
buildings) ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 4
(3) Changes in the financial and insurance industries ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 4
3) Reputational Risks 1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙4
( 1 ) ESG Assessment and Commercial Real Estate ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 5
(2) Social Responsibility and Corporate Image ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 5
3. Climate Change and Commercial Real Estate Asset Value Changes
Case Study 1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙5
1) Climate Change Impacts in U.S. Coastal Cities Case Study 1 ∙∙∙∙∙∙∙∙∙5
( 1 ) New York City ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 5
( 2) Miami∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 6
2) U.S. heat waves and building energy efficiency 1∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙6
( 1 ) Los Angeles ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 7
3) Social responsibility and corporate reputational change in post-Brexit
Britain 1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙7
( 1 ) Run ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 8
4) Developing commercial real estate for post-Singapore climate
change adaptation 1∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙8
( 1 ) Singapol∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1 9
5) Case Analysis Perspectives 1 ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙9
4. Climate Change Adaptation and the Future of the Commercial Real
Estate Market∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙201) Climate Change Adaptation and the Transformation of the
Commercial Real Estate Market ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙21
2) Growing demand for sustainable commercial real estate ∙∙∙∙∙∙∙22
3) Climate Change Adaptation and Future Strategies ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙24
I. λ ローン ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙25
1 . The Future of the Commercial Real Estate Market ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙25
IV. References ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙27Tables 木 Tea
<Table 2- 1> Direct impacts of climate change on real estate markets 7Therim neck car
<Figure 1- 1> Near-surface temperature anomalies for 2 0 2 3 ∙∙∙∙∙∙∙∙2
<Figure 1- 2> Scope ofthe Coastal Real Estate Market Adaptation Model
∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙1
<Figures 1-3>Research flowchart ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙2
<Figures1-3> Greenhouse Gas Components ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙3-. 1
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I . . ron
1. research vessel
The impact of climate change on the commercial real estate market is
becoming increasingly significant. Rising sea levels and extreme weather
events can have a profound impact on real estate values, especially in
coastal areas. 1) These climate change risk factors increase uncertainty in
the real estate market and present new challenges and issues for investors.
2)
In addition, sustainable and environmental considerations are
increasingly being incorporated into real estate appraisals, which affects
value changes in the market. 3) Policymakers are increasingly regulating
climate change in response to these changes, which can have a positive
impact o n the commercial real estate market. 4) Strategic r e s p o n s e s
are needed to mitigate the impact of climate change, which will contribute
to e n s u r i n g the l o n g - t e r m s t a b i l i t y of the real estate market.
Therefore, climate change will have a significant impact on commercial real
estate values, and investment and policy decisions need to take this into
account.
Climate change is causing serious environmental, social and economic
challenges around the world, and its effects are being felt across many
industries. The real estate industry i s one of the most directly affected by
climate change, and the value of commercial real estate can be affected by
climate change. Climate change can change the value of commercial real
estate not only due to physical hazards, but also due to various factors such
as political changes and changes in market demand.
The commercial real estate market is closely tied to local economies, and-. 2
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10
the impact of climate change on the environmental and economic
characteristics of these regions can have a s i g n i f i c a n t impact on the
v a l u a t i o n and investment strategies of commercial real estate
assets. As such, climate change will require a recalibration of commercial
real estate investment and management s t r a t e g i e s .
1) Putra, H. C., Zhang, H., & Andrews, C. (2015). Modeling Real Estate Market Responses to
Climate Change in the Coastal Zone. JASSS: The Journal of Artificial Societies and Social
Simulation, 18.
2) bunten, D., & Kahn, M. E. (2017). Optimal real estate capital durability and localized
climate change disaster risk. Journal of Housing Economics, 36, 1-7.
3) Shahid, S., Pour, S. H., Wang, X., Shourav, S. A., Minhans, A., & Ismail, T. (2017).
Impacts and adaptation to climate change in Malaysian real estate. International Journal of
Climate Change Strategies and Management, 9, 87-103.
4) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations in
the commercial real estate market. Energy Policy.-. 3
- - -
10
Source: U.S. National Oceanic and Atmospheric Administration, National Centers for Environmental
Prediction (NCEP)
<Figure 1- 1: Near-surface temperature anomalies above the mean for
2 0 2 3 (difference from the 1 991-2020 mean).
2. For research purposes, please visit
By analyzing the various risks that may arise from climate change, the
report provides substantive insights for investors and policymakers. Research
has shown that climate change can cause not only physical risks, but also
economic and legal risks, which increase the volatility of the real estate
market. 5)
Especially in coastal areas, climate change, such as sea level rise, can have
a direct impact on property values. 6)
It is also important to emphasize sustainable development and
environmental r e s p o n s i b i l i t y as investment strategies to address
climate change. 7) Such studies provide important inputs for policy
formulation and asset management, and support strategic responses to-. 4
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10
ensure long-term market stability. In conclusion, research that analyzes the
impacts of climate change will contribute to strengthening the
sustainability and resilience of real estate markets. 8)
5) Ling, D. C., Robinson, S., Sanderford, A., & Wang, C. (2024). Climate change and
commercial property markets. Journal of Regional Science.
6) Putra, H. C., Zhang, H., & Andrews, C. (2015). Modeling Real Estate Market Responses to
Climate Change in the Coastal Zone. JASSS: The Journal of Artificial Societies and Social
Simulation, 18.
7) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations in the
commercial real estate market. Energy Policy.
8) Shahid, S., Pour, S. H., Wang, X., Shourav, S. A., Minhans, A., & Ismail, T. (2017). Impacts
and adaptation to-. 5
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10
This study analyzes the impact of climate change on the value of commercial
real estate, and concludes that climate change is likely to affect
commercial
It explores important factors to consider in the commercial real estate
market. It also offers strategies for developing and managing real estate in
response to climate change, and aims to provide useful information for
commercial real estate i n v e s t o r s .
The impact of climate change on commercial real estate values has
not been fully studied, and a systemic analysis of the impacts is needed.
This study will make an important contribution to the comprehensive
examination of the physical, transitional, and reputational risks of climate
change on real estate values and to the development of real estate
market responses to climate change.
Source: https: //www. j asss. org/1 8/2/1 8/Fig01 . png
<Figure 1- 2> Scopeofthe Coastal Real Estate Market
Adaptation Model
3. Scope and Methods of the Study Ron
This study utilizes a variety of sources to analyze the impact of climate
change on commercial real estate values. It examines p o l i c y and legal
changes r e l a t e d to climate change, physical risk, transitional risk, and-. 6
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10
reputational risk, and uses empirical examples to analyze how these factors
have i m p a c t e d real-world commercial real estate markets. T h e
research methodology will utilize qualitative and quantitative analysis,
including literature review, case analysis, and expert interviews. I n
a d d i t i o n , economic modeling will be used to predict the long-term
impact of climate change o n real estate values. 9)
It contributes to a comprehensive understanding of the complex impacts
of climate change and provides substantive insights for investors and
policymakers. 1 0)
Climate change in Malaysian real estate. International Journal of Climate Change Strategies
and Management, 9, 87-103.
9) Coulson, E., Palacios, J., & Zheng, S. (2024). Climate change and real estate: An
introduction to the special issue. Journal of Regional Science.-. 7
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10
Comprehensively analyze the
compounding impacts of climate
change to provide insights for investors
and policymakers
Composi
te
im
pact
analysis
Analyzing the effects of climate change
policy and legislation on commercial real
estate markets
Climate
correctio
n
effects
Predicting the long-term impacts of climate
change through economic modeling
Predictive
change
Case United States, United Kingdom, Singapur
analysis
Designing a Survey the literature
study
Research design, case analysis, and climate
forecasting change impact analysis
Stud
y
design
and
result
s
Analyz
e
Chap
ter 3
Analyzing leading research
Proactive research and differentiation
Line
Re
viewing
research
Physical , Transshipment , Pan-Panelist Value
Im
pact on
Definitions and Factors Direct and Indirect
Impacts
Theoretical
Goals
Climate Change and Commercial Real
Estate
Ration
ality
and
Reviewi
ng prior
research
Chap
ter 2
Climate Change ImpactsReal Estate
Risks
Analyzing the impact of climate change
on real estate values
Research
objectiv
es and
methods
Climate change impacts the real estate
market
Background
of the
study
Background and purpose of the study, scope and
methodology of the study
Introdu
ction
Chap
ter 1-. 8
- - -
10
<Figure 1- 3>Research flowchart
10) Ling, D. C., Robinson, S., Sanderford, A., & Wang, C. (2024). Climate change and
commercial property markets. Journal of Regional Science.
Climate change adaptation and futures
strategies
Growing demand for sustainable
commercial real estate
Climate change response and changes
incommercial real estate markets
Proposal
Climate Change Adaptation and the Future of the
Commercial Real Estate Market
Concl
usio
ns
and
sug
gesti
ons
Cha
pter
4-. 9
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10
II . . λ
1 . Climate Change and Commercial Real Estate Chapter 1.
1) Definition and main drivers of climate change
Climate change refers to the phenomenon of long-term changes in the
Earth's climate pattern due to an increase in the concentration of
greenhouse gases in the atmosphere. Among the greenhouse gases, carbon
dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) are the main
contributors. Since the Industrial Revolution, human activities have caused
a dramatic increase in greenhouse gas emissions, resulting in a global
average temperature increase of more than 1°C, which has led to extreme
weather events, rising sea levels, and melting of polar ice caps.
The main causes of climate change are the burning of fossil fuels,
deforestation, and agricultural activities, which a r e the main sources of
increasing greenhouse gases in the atmosphere. These changes are
affecting climate patterns on a global scale, resulting in an increase in the
frequency and intensity of climate disasters in various regions.
Climate change refers to long-term changes in weather patterns over a
region or the world, including changes in average temperature,
precipitation, wind patterns, and other factors. The main causes are
greenhouse gas emissions, such as the burning of fossil fuels, deforestation,
land use change, and natural factors. Studies have shown that climate
change affects a wide range of species, especially those such as the honey
bee in North America, with temperature changes reported to have the
greatest impact. 1 1 )-.
10 -
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10
In addition, climate change is considered a serious threat to public health,
and there are communities exposed to greater risk of the harmful consequences
of climate change due to structural racism. 1 2) In this context, the commercial
real estate market may experience a number of challenges and opportunities as a
result of climate change. For example, climate change in certain regions can
have a direct impact on property values, while climate resilience can lead to
increased demand for buildings. Therefore, adapting to climate change and
pursuing sustainable development is critical to maintaining the stability and
competitiveness of the commercial real estate market.
11) Jackson, H., Johnson, S. A., Morandin, L., Richardson, L. L., Guzman, L., & M'Gonigle,
L. (2022). Climate change winners and losers among North American bumblebees. Biology
Letters, 18.
12) Nogueira, L. M., White, K., Bell, B., Alegria, K. E., Bennett, G., Edmondson, D., Epel,
E., Holman, E. A., Kronish, I., & Thayer, J. (2022). The Role of Behavioral Medicine in
Addressing Climate Change-Related Health Inequities. Translational Behavioral Medicine,
12, 526-534.-.
11 -
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10
<Figure1-3> Greenhouse Gas Components
Top row: (a) parts per million concentration of carbon dioxide (CO2), (b) parts per billion concentration of
methane (CH4), (c) parts per billion concentration of nitrogen dioxide (N2O), and the monthly average global
average mole fraction (a measure of atmospheric concentration) from 1918 to 2022. Bottom row: (d) Growth rates
showing the annual average mole fraction increase in carbon dioxide (CO2), (e) the annual average mole fraction
increase in methane (CH4), and (f) the annual average mole fraction increase in nitric oxide (N2O).
2) The direct impact of climate change on real estate markets
Climate change has a number of direct impacts on the real estate market,
particularly commercial real estate. The most significant impact is
physical hazards. Extreme weather events such as sea level rise, heat
waves, flooding, and storms have a direct impact on the physical condition
and functionality of commercial real estate. For example, commercial
properties located along the coast are at greater risk of inundation and
physical damage from rising sea levels, typhoons, and storms. Heat waves
caused by climate change can also result in economic burdens, such as
increased energy consumption and higher cooling costs for buildings. In
addition, natural disasters caused by climate change can increase
construction and maintenance costs and cause additional economic-.
12 -
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10
burdens, such as higher insurance premiums. These changes could reduce
the asset value and profitability of commercial real estate.
The increasing frequency of natural disasters can reduce property values
in certain areas, especially in regions sensitive to climate change. 1 3) This
increased risk can lead to higher insurance costs, which can result i n
additional financial burdens for property owners[2]. I n a d d i t i o n,
increased government climate change policies may result in
i n c r e a s e d regulation of real estate d e v e l o p m e n t and
operations, which can result in additional costs to comply with new
environmental regulations. 1 4)
13) Jackson, H., Johnson, S. A., Morandin, L., Richardson, L. L., Guzman, L., & M'Gonigle, L.
(2022). Climate change winners and losers among North American bumblebees. Biology
Letters, 18.-.
13 -
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10
As a result, investors are turning their attention to regions with climate
resilience, and real estate in these areas is becoming increasingly sought after.
Demand is likely to increase. 1 5) Infrastructure improvements and
maintenance costs to address climate change may increase, resulting in
higher overall operating costs. 1 6)
<Table 2- 1> Direct impacts of climate change on the real
estate market
Effects of climate
change
Details Reference
s
Physical hazards
The impact of extreme weather events such as sea
level rise, heat waves, flooding, and storms on the
physical condition and function of commercial real
estate. Seaside properties are
Risk of flooding and physical damage.
Jackson
e
t al.
( 2022)
Increased
energy
consumption
Heat waves cause higher cooling costs and
increased energy consumption, resulting in economic
burdens.
Due to natural
disasters
Economic charge
When natural disasters due to climate change
increase construction and maintenance costs
Additional economic consequences, such as higher
interest rates and rising insurance premiums.
Property
Value
Harvesting
Increased Frequency of Natural Disasters in Certain
Areas Causing Real Estate Values to Decline. Climate
change
Tapping in sensitive areas.
Jacksonet
et al. ( 2022)
Rising
insurance
costs
Rising insurance costs due to increased risk of
natural disasters, to property owners
Get additional economic coverage.
Government
Strengt
hening climate
policy
Increased regulation of real estate development
and operations as governments tighten their
climate change response policies. Additional costs
incurred to comply with new environmental
khtyrska
& F u e r
s t ( 2024)-.
14 -
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10
regulations.
Climate
Resilience
t
o an area
where
t
o
Rotate
Investors focus on areas with climate resilience and
the potential for increased demand for real estate in
those areas.
Feng et
al. ( 2024)
Increased
operational
costs
Rising overall operating costs due to increased
infrastructure development and maintenance costs
to address climate change.
Sobieraj
& M e t e
l s k i
( 2024)
Growing
demand for
sustainable
construction
Increasing consumer expectations for sustainable
construction and energy efficiency, and thus
increasing demand for properties that meet these
standards.
Glancy
e
t al.
( 2021 )
Sustainable
development
and climate
resiliency
Increasing importance of sustainable
development and climate resilience in the
commercial real estate market.
Glancy et
al. ( 2021 )
14) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations in
the commercial real estate market. Energy Policy.
15) Feng, Z., Lu-Andrews, R., & Wu, Z. (2024). Commercial Real Estate in the Face of
Climate Risk: Insights from REITs. Journal of Real Estate Research.
16) Sobieraj, J., & Metelski, D. (2024). Machine Learning Insights: Exploring Key Factors
Influencing Sale-to-List Ratio-Insights from SVM Classification and Recursive Feature
Selection in the US Real Estate Market. Buildings.-.
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Finally, consumers' increasing expectations for sustainable construction
and energy efficiency are driving demand for properties that meet these
standards. 1 7) These changes are fu r the r emphasizing the importance of
sustainable development and climate resilience in the commercial real
estate market.
3) The Indirect Impacts of Climate Change on Commercial Real Estate
Climate change also has indirect impacts on commercial real estate.
These impacts can be divided intotransitional risk and reputationalrisk.
Increasing awareness of climate change is changing the demands of
consumers and i n v e s t o r s , increasing the demand for sustainable
and environmentally friendly buildings. This puts pressure on companies
to modify the way buildings are designed and operated, and is becoming
an e s s e n t i a l factor in maintaining market competitiveness.
Climate change may increase uncertainty across the economy,
c o m p l i c a t i n g investment decisions and causing volatility in the
real estate market. In addition, as the cost of infrastructure
maintenance and development increases, companies will need to
e x p l o r e strategies to reduce operating costs. 20)
Changes in community and government policies can have an indirect impact on
real estate values, which can affect long-term investment plans. 21) In this context,
it is important for the real estate market t o d e v e l o p adaptation
strategies for climate change and pursue sustainable development. 22)-.
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(1) Transitional Risks
Transition risks arise from changes in policy, legislation, regulation, or
markets in response to climate change.
17) Glancy, D., Krainer, J. R., Kurtzman, R. J., & Nichols, J. B. (2021). Intermediary
Segmentation in the Commercial Real Estate Market*. Journal of Money, Credit and
Banking
18) Shahid, S., Pour, S. H., Wang, X., Shourav, S. A., Minhans, A., & Ismail, T. (2017).
Impacts and adaptation to climate change in Malaysian real estate. International Journal of
Climate Change Strategies and Management, 9, 87-103.
19) Nguyen, T. T. H., Balli, F., Balli, H. O., & Syed, I. (2021). Direct real estate,
securitized real estate, and equity market dynamic connectedness. Applied Economics,
54, 2658-2677.
20) Feng, Z., Lu-Andrews, R., & Wu, Z. (2024). Commercial Real Estate in the Face of
Climate Risk: Insights from REITs. Journal of Real Estate Research.
21) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations
in the commercial real estate market. Energy Policy.
22) Elkhatat, A. M., & Al-Muhtaseb, S. (2024). Climate Change and Energy Security: A
Comparative Analysis of the Role of Energy Policies in Advancing Environmental
Sustainability. Energies.-.
17 -
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Risk means danger. For example, governments may enact legislation to limit
carbon emissions to mitigate climate change.
These regulations have implications for the development and operation
of commercial real estate. Increased energy efficiency regulations for
existing buildings or tighter carbon emissions regulations can impact
the value of commercial real estate. In addition, as more and more
investors are considering environmental, social and governance (ESG)
criteria when making investment decisions, there is a growing demand
for sustainable buildings and green buildings. Increasing energy
efficiency standards due to policy changes may reduce the value of
existing buildings, and 23) small
In addition, changes in the physical environment due to climate change
may jeopardize the location and value of real estate in certain areas, which
may jeopardize the location and value of real estate in certain areas. 24)
Lending c o n d i t i o n s may tighten as financial institutions t a k e
climate-related risks into account, w h i c h m a y affect t h e
f i n a n c i n g of real estate developments. 25)
These changes may also affect investors' portfolio s t r a t e g i e s ,
i n c r e a s i n g the volatility of the commercial real estate market. 26)
Therefore, real estate organizations and investors should have
appropriate risk assessment and response strategies in place to manage
these transitional risks. 27)
(2) Reputational Risks
If companies fail to fulfill their social responsibility for climate change,
their reputation can be damaged. This can reduce the value of the
commercial real estate in which they are located. The reputation-.
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associated with a company's ESG practices often affects the profitability of
its real estate. For example, environmentally friendly buildings or buildings
that utilize renewable energy m a y o f f e r greater value to investors or
tenants. Therefore, companies and real estate developers t h a t are
sensitive to climate change may need to adopt s u s t a i n a b l e strategies t o
compete in the marketplace.
Companies that do not adopt sustainable building practices may be viewed
negatively by environmentally conscious consumers a n d investors.
According to a study by Khalid et al. 28), climate change management practices
have been shown to have a significant impact on corporate
23) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations
in the commercial real estate market. Energy Policy.
24) Shahid, S., Pour, S. H., Wang, X., Shourav, S. A., Minhans, A., & Ismail, T. (2017).
Impacts and adaptation to climate change in Malaysian real estate. International Journal of
Climate Change Strategies and Management, 9, 87-103.
25) Glancy, D., Krainer, J. R., Kurtzman, R. J., & Nichols, J. B. (2021). Intermediary
Segmentation in the Commercial Real Estate Market*. Journal of Money, Credit and
Banking.
26) bunten, D., & Kahn, M. E. (2017). Optimal real estate capital durability and localized
climate change disaster risk. Journal of Housing Economics, 36, 1-7.
27) Macdiarmid, J., & Whybrow, S. (2019). Nutrition from a climate change perspective.
Proceedings of the Nutrition Society, 78, 380-387.-.
19 -
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This has a direct impact on the reputation of the company, which canbe similar
in the commercial real estate market.
c.
Akhtyrska & Fuerst29) analyzed the effectiveness of climate change
regulation in the commercial real estate market and noted t h a t noncompliant
firms are likely t o face increased reputational risk. In addition,
Pan et al. 30) noted the importance of s t r e n g t h e n i n g a firm's
reputation under climate change conditions, which is essential for real
estate firms to remain competitive in the marketplace. These studies
emphasize the importance of organizations managing their reputation
in response to climate change and ensuring long-term business
sustainability.
4) The Case for Climate Change's Impact on the Commercial Real Estate Market
The effects of climate change are already being felt in many
commercial real estate markets around the world. In coastal cities and
flood-prone areas, adaptation to climate change is becoming an
increasingly important issue.
(1) For coastal cities
As sea levels rise and the risk of powerful winds increases, commercial
real estate near the coast continues to appreciate in value. For example, in
large cities such as New York City and Miami, infrastructure improvements
are required to prepare for rising sea levels, and the construction and
disaster-resistant capabilities of buildings are being evaluated. This is
leading to adjustments in property values in these areas, or to
redevelopment to avoid the risks of climate change.-.
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Rising sea levels and frequent flooding can cause property values to
decline and insurance premiums to rise, posing a significant r i s k to
investors and developers. For example, New York City faces a range of
flooding risks, which affect the city's infrastructure and natural infrastructure.
31) In Miami and New Orleans, climate change-induced weather extremes
have worsenedthe financing conditions for development projects.
28) Khalid, F., Sun, J., Guo, J., & Srivastava, M. (2023). Green corporate image: Assessing
the effects of climate change management practices on corporate reputation. Corporate
Social Responsibility and Environmental Management.
29) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations
in the commercial real estate market. Energy Policy.
30) Pan, J., Hunjra, A. I., Bruna, M., Zhao, S., & Bouri, E. (2024). Shaping sustainability:
How corporate reputation can be enhanced under climate change conditions. Finance
Research Letters.
31) Rosenzweig, B., Montalto, F. A., Orton, P., Kaatz, J., Maher, N., Kleyman, J., Chen, Z.,
Sanderson, E., Adhikari, N., McPhearson, T., & Herreros-Cantis, P. (2024). NPCC4:
Climate change and New York City's flood risk. Annals of the New York Academy of
Sciences.-.
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There is. These changes are also affecting consumer preferences, increasing
demand for sustainable buildings.
is a trend.
Wallace presented a framework for coastal cities to adapt to climate
change, emphasizing the n e e d for appropriate response strategies. 32)
Teicher studied how real estate organizations can turn climate risk into a
competitive a d v a n t a g e , exploring the strategies n e e d e d t o stay
competitive in the marketplace. 33) These studies suggest that appropriate
responses to climate change will be essential in the commercial real estate
markets of coastal cities.
(2) Energy efficiency in heat waves and dry spells
Heat waves increase the demand for cooling in buildings, which drives
up energy costs, which in turn increases operating costs. According to a
study by Bamdad et al, temperature increases due to climate change can
negatively affect the energy efficiency of buildings, which can affect property
values in the long run. 34) Chen et al. emphasize that improving energy
efficiency is important to reduce energy consumption at the city scale,
which is essential to m a i n t a i n the c o m p e t i t i v e n e s s of
commercial real estate. 35)
These changes are prompting companies to adopt sustainable building
practices and introduce technologies that increase energy efficiency.
Olabi & Abdelkareem suggest that utilizing renewable energy sources is an
effective way to respond to climate change, which can also provide
positive perceptions in the real estate market. 36) Therefore, improving
energy efficiency is becoming increasingly important in the commercial-.
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real estate market as a response to heat waves.
Energy efficiency in commercial buildings is becoming an increasingly
important factor in regions with frequent heat waves. Buildings that are
vulnerable to high temperatures may experience increased operating
costs and r e d u c e d t e n a n t demand. On the other hand, buildings with
highly efficient energy systems retain a higher relative value.
32) Wallace, B. D. (2017). A framework for adapting to climate change risk in coastal cities.
Environmental Hazards: Human and Policy Dimensions, 16, 149-164.
33) Teicher, H. M. (2018). Practices and pitfalls of competitive resilience: Urban adaptation
as real estate firms turn climate risk to competitive advantage. Urban Climate.
34) Bamdad, K., Cholette, M. E., Omrani, S., & Bell, J. (2020). Future energy-optimised
buildings - Addressing the impact of climate change on buildings. Energy and Buildings, ,
110610.
35) Chen, Y., Ren, Z., Peng, Z., Yang, J., Chen, Z., & Deng, Z. (2023). Impacts of climate
change and building energy efficiency improvement on city-scale building energy
consumption. Journal of Building Engineering.
36) Olabi, A., & Abdelkareem, M. (2022). Renewable energy and climate change.
Renewable and Sustainable Energy Reviews.-.
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(3) Sustainable development practices
In many cities, there is an active movement to build environmentally
sustainable buildings to combat climate change. For example, commercial
properties that are certified as "green" are in high demand from investors
and tenants, resulting in higher market values. This growing demand for
sustainable buildings demonstrates that addressing climate change is
becoming an important factor in the commercial real estate market.
Sustainable development increases environmental value by
increasing energy efficiency and reducing carbon emissions, and these
attributes are evident in buildings that have earned environmental
certifications such as LEED certification. 37) These buildings are
experiencing higher rental returns and asset appreciation in the
marketplace, reflecting consumer and investor preference for lower
energy costs. 38)
In addition, sustainable development minimizes the effects of
climate change and increases the resilience of communities through the
integration of renewable energy and the provision of green space. 39)
Bamdad et al. emphasized that climate change can have a negative impact
on the energy efficiency of buildings, but sustainable building technologies
can mitigate these impacts. 40)
A study by Chen et al. shows that it is possible to reduce city-wide
energy consumption, which has contributed to improved long-term
investment returns for commercial real estate. 41 These studies
suggest that sustainable development is an important s t r a t e g y for
effectively managing the impacts of climate change.-.
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2. How Climate Change Is Affecting Commercial Real Estate Values
Climate change affects commercial real estate values in several ways.
These impacts can be broadly c a t e g o r i z e d into physical risks,
transitional risks, and reputational risks. Let's take a look at how each risk
affects the value of commercial real estate.
37) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land.
38) Clayton, J., Devine, A., & Holtermans, R. (2021). Beyond building certification: The
impact of environmental interventions on commercial real estate operations. Energy
Economics, 93, 105039.
39) Olabi, A., & Abdelkareem, M. (2022). Renewable energy and climate change.
Renewable and Sustainable Energy Reviews.
40) Bamdad, K., Cholette, M. E., Omrani, S., & Bell, J. (2020). Future energy-optimised
buildings - Addressing the impact of climate change on buildings. Energy and Buildings, ,
110610.
41) Chen, Y., Ren, Z., Peng, Z., Yang, J., Chen, Z., & Deng, Z. (2023). Impacts of climate
change and building energy efficiency improvement on city-scale building energy
consumption. Journal of Building Engineering.-.
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1) Phys ical Risks
Physical risk refers to the risk from actual natural disasters or extreme
changes in weather caused by climate change. Physical hazards have a
significant impact on commercial real estate values over the long term.
These physical hazards can t a k e the form of extreme weather events,
flooding, heat waves, and strong winds, which directly affect the physical
condition of commercial real estate.
( 1 ) Flooding and sea level rise
Commercial real estate located near the coast or near waterways faces
the risk of flooding and sea level rise. As the risk of inundation increases
with sea level rise, the value of real estate can decline dramatically, especially
if the area in which the commercial property is located is at risk of flooding,
rental revenues tend to decline and asset values tend to decline. For
example, cities such as New York City and Miami are already undergoing
major reconstruction and waterproofing in response to rising sea levels and
the threat of storms, and these costs are impacting long-term investments.
(2) Cooling costs for heat waves and buildings
S umm e r iron h e a t waves are expected to occur more frequently due
to climate change. This has a number of negative implications for
commercial real estate. First, energy costs can skyrocket as demand for
cooling increases. Second, heat waves can weaken the construction of
certain buildings. For example, high temperatures can damage the
building's exterior walls and geosynthetic materials, which can lead to-.
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increased maintenance costs. Third, heat waves can create an environment
that makes it d i f f i c u l t for people to be active in the building, which can
adversely affect t e n a n t demand.
(3) Other natural disasters (storms, high winds, etc.)
Climate change is leading to an increase in powerful storms and high
winds. These natural disasters can have a direct impact on the structure of
buildings and require additional disaster protection measures to prevent
them. Storm damage can increase repair costs and contribute to higher
insurance premiums, especially in areas that are prone to these natural
disasters, which can lead to a decrease in the value of commercial real
estate.-.
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2) Trans itional Ris ks
Transitional risk refers to risks arising from policy changes or legal
regulations in response to climate change, as well as economic and social
changes. It is one of the main factors that can affect commercial real estate
values. Transitional risk is driven by efforts to mitigate and adapt to climate
change, which has a significant impact on demand and s u p p l y in the real
estate market.
(1) Policy changes and legal restrictions
Governments and international organizations are increasingly regulating
greenhouse gas emissions and introducing green building codes to
combat climate change. For example, many countries are tightening
building energy efficiency standards to reduce carbon emissions, which is
an important consideration for commercial real estate developers.
Buildings that are not energy efficient are likely to be increasingly excluded
from the market, which couldlead to a decrease in the value of the property.
(2) Changes in market demand (increasing demand for green buildings)
As environmental, social, and governance (ESG) investment criteria have
become more stringent among global investors, the demand for
sustainable buildings is growing rapidly. In particular, buildings with
greater energy efficiency and lower carbon emissions are seen as assets
with the potential for higher returns. In the commercial real estate market,
"green building" is now becoming an important competitive feature, and
s u c h buildings are likely to generate stable rental i n c o m e over t h e
l o n g t e r m .
(3) Changes in the financial and insurance industry-.
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The financial and insurance industries are adjusting investment criteria and
insurance rates to reflect the risks posed by climate change. For example, insurers
may increase premiums for commercial real estate in areas vulnerable to climate
change, which increases the operating costs of such properties. Financial
institutions may also ease lending conditions for climate-resilient
businesses and buildings and, conversely, reduce lending to assets that are
vulnerable to climate change.
3) Reputational Risks
The reputation of companies and commercial real estate has a significant
impact on its value, especially if companies are not seen to be proactive in
responding to climate change, their reputation can b e negatively impacted,
which can reduce the value of their real estate assets.-.
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(1) ESG Assessment and Commercial Real Estate
As more companies become climate-sensitive, there is a growing
demand from commercial real estate tenants for buildings that meet
ESG criteria. This increases the preference for sustainable buildings,
and climate-resilient buildings are a factor in increasing their market value.
Conversely, companies or buildings that are not concerned with
climate change may be shunned by investors. For example, buildings
that have not taken steps to reduce carbon emissions may be viewed
unfavorablyby tenants and investors.
(2) Social Responsibility and Corporate Image
If a company fails to fulfill its social responsibilities, its image can be
tarnished, which can affect the rental demand for the commercial real
estate in which it is located. For example, a building that houses an
environmentally destructive company can create a negative i m a g e for
tenants, which can lead to l o w e r rents and reduced asset value. On the
other hand, companies that have adopted a sustainable business model are
more likely to prefer to locate in environmentally friendly buildings.
3. Climate Change and Changes in Commercial Real Estate Asset Values
Case Study
To gain a realistic understanding of the impact of climate change on
commercial real estate asset values, it is important to analyze specific
cases. In this section, we provide specific examples of how the physical,
transitional, a n d reputational risks of c l i m a t e change have
m a n i f e s t e d in the commercial real estate m a r k e t , and how each-.
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case h a s impacted asset v a l u e s .
1) Examples of climate change impacts in U.S. coastal cities
( 1 ) New York City
New York City, a city vulnerable to sea level rise and storms, is one of the
most prominent examples of the impact of climate change on commercial
real estate assets. In 201, Hurricane Sandy struck New York City's major
commercial districts, causing severe damage to many commercial
properties. Buildings along the waterfront were flooded, and many
commercial properties had to u n d e r g o long-term restoration work,
resulting i n lower property values in the area.
The event had a major impact on New York City's real estate market, a n d
t h e government andprivate sector subsequently worked t o g e t h e r to
address climate change mitigation.-.
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As part of this, we have begun a major infrastructure improvement effort for
rain, including additional low-lying areas.
Development has been curbed, and stronger building regulations have
been introduced, along with disaster protection against rising sea levels.
This has led to a resurgence in commercial real estate values in some
coastal areas, but the risk to the region is still being assessed on an ongoing
basis.
( 2) Miami
Miami is another city impacted by sea level rise and climate change, with
commercial properties, especially those near the coast, facing the risk of
flooding and powerful storms due to climate change. In 201 7, hurricanes
Harvey and Irma caused severe damage to major commercial properties in
the Miami area, which briefly shook c o n f i d e n c e in the real estate
market.
However, in response to climate change, the city of Miami has developed a
Climate Adaptation Plan, is promoting redevelopment in low-lying areas,
and is strengthening its water-resistant systems. As a result of these efforts,
M i a m i 's commercial real estate market i s experiencing a resurgence,
w i t h demand for high-rise b u i l d i n g s and b u i l d i n g s designed
for sea level rise.
2) U.S. Heatwave and Energy Efficiency in Buildings
The increased demand for cooling due to heat waves drives up energy
costs, which can have a negative impact on the profitability of real estate.
Chen et al. noted that improving the energy efficiency of buildings can
reduce energy consumption at the city scale, emphasizing that such
improvements can contribute to mitigating the negative impacts of heat-.
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waves. 42) Energy efficiency strategies such as high-efficiency HVAC
systems and insulation retrofits can help reduce operating costs and increase
the market value of buildings in the long run. 43) In addition, research by Li
et al. has shown that energy-efficient buildings can provide a positive image
to consumers and investors through environmental credentials. 44) These
changes reinforce the trend toward emphasizing sustainable
development, which is becoming an e s s e n t i a l strategy for maintaining
competitiveness in the commercial real estate market.
42) Chen, Y., Ren, Z., Peng, Z., Yang, J., Chen, Z., & Deng, Z. (2023). Impacts of climate
change and building energy efficiency improvement on city-scale building energy
consumption. Journal of Building Engineering.
43) Catrini, P., Curto, D., Franzitta, V., & Cardona, F. (2020). Improving energy efficiency
of commercial buildings by Combined Heat Cooling and Power plants. Sustainable Cities
and Society, 60, 102157.
44) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land.-.
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( 1 ) Los Angeles
Los Angeles i s a region that experiences frequent summer h e a t
waves, making it one of the cities most likely to be impacted by climate
change. Heat waves can cause cooling costs for buildings to skyrocket, and
commercial properties with low energy efficiency can become more
expensive to operate. In particular, when record-breaking heat waves hit
Los Angeles in the s u m m e r of 2020, energy costs for many commercial
buildings s p i k e d, and some t e n a n t s moved to more energy-efficient
properties.
Los Angeles has responded by promoting a variety of policies that
emphasize green building and energy efficiency. Energy-efficient
buildings are highly desirable to tenants, and as a result, the value of
these buildings has r e m a i n e d stable or increased. For example,
commercial buildings that are LEED-certified are valued higher than other
buildings in terms of rent and asset value.
3) Social responsibility and corporate reputational change in post-Brexit Britain
In the UK, corporate social responsibility (CSR) is playing an important role
in tackling climate change, and this has a d i r e c t impact on corporate
reputation. Research shows that CSR activities have a positive impact on
consumer loyalty and corporate reputation, which is m e d i a t e d by
customer satisfaction and t r u s t . 45) Research also shows that a
combination of CSR and consumer social responsibility (CnSR) can
contribute to customer retention and satisfaction. 46) Exposure to and risk
management of climate change is an important component of CSR,
enabling companies to build a positive reputation through sustainable
energy transitions. 47) Some companies are reinforcing their positive image by-.
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setting carbon neutrality targets and expanding their use of renewable
energy. Such responsible behavior is essential to a company's long-term
success and reputation, and companies that do not fulfill their social
responsibilities may be at risk of negative publicity. 48) Therefore, social
responsibility for climate change is an important strategy f o r meeting
consumer a n d investor e x p e c t a t i o n s and gaining a sustainable
competitive a d v a n t a g e .
45) Islam, T., Islam, R., Pitafi, A. H., Liang, X., Rehmani, M., Irfan, M., & Mubarak, M. S.
(2021). The impact of corporate social responsibility on customer loyalty: The mediating
role of corporate reputation, customer satisfaction, and trust. Sustainable Production and
Consumption, 25, 123-135.
46) Jiang, H., & Fang, W. (2024). Impact of corporate social responsibility on consumer
retention and satisfaction with moderation of consumer social responsibility drawing on
stakeholder theory analysis. Corporate Social Responsibility and Environmental
Management.
47) Mbanyele, W., & Muchenje, L. T. (2022). Climate Change Exposure, Risk Management
and Corporate Social Responsibility: Cross Country Evidence. Journal of Multinational
Financial Management.
48) Baudot, L., Johnson, J. A., Roberts, A., & Roberts, R. (2020). Is Corporate Tax
Aggressiveness a Reputation Threat? Corporate Accountability, Corporate Social
Responsibility, and Corporate Tax Behavior. Journal of Business Ethics, 163, 197-215.-.
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( 1 ) RunDown
As awareness of climate change and sustainable development has grown
in London, the demand for buildings that meet environmental, social and
governance (ESG) standards has increased dramatically. In particular, the
"carbon stewardship" goals launched in 201 9 have led many companies to
make addressing climate change an important corporate strategy. This has
led to a significant increase in demand for commercial real estate that
adopts sustainable building practices.
In the City of London, London's main financial center, the increase in
'green building' that meets ESG criteria has led to higher r e n t s and asset
values for these buildings. For example, a large commercial b u i l d i n g in the
City of London has seen r e n t a l income increase by more than 20%
after renovating to a sustainable building with improved energy efficiency
and the use of reused m a t e r i a l s . The building also proved very attractive
to tenants who considered the organization's ESG reputation, which played a
key role in i n c r e a s i n g the building's market value.
4) Developing Commercial Real Estate for Climate Change Adaptation in
Singapore
Singapore is adopting a strategy that emphasizes sustainability in
commercial real estate development to address climate change.
Research has shown that green building is a priority in Singapore's real
estate market, demonstrating that energy efficiency and environmentally
friendly design add commercial value. 49)
Through green building certification schemes, governments are
encouraging energy efficiency and environmentally friendly design,-.
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which contribute to lower operating costs by reducing carbon emissions
and optimizing energy consumption. These policies have helped
alleviate the city's heat island effect. Commercial real estate
developers can integrate green spaces and ecosystems to build a
positive brand image, attract investors' attention and strengthen
their competitiveness. 50)
This sustainable development strategy is also linked to corporate social
responsibility (CSR), which has been shown to have a positive impact on
corporate reputation and customer loyalty. 51) This approach indicates
that Singapore is moving in an innovative and sustainable direction to
effectively respond to climate change.
49) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
50) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations
in the commercial real estate market. Energy Policy.
51) Islam, T., Islam, R., Pitafi, A. H., Liang, X., Rehmani, M., Irfan, M., & Mubarak, M. S.
(2021). The impact of corporate social responsibility on customer loyalty: The mediating
role of corporate reputation, customer satisfaction, and trust. Sustainable Production and
Consumption, 25, 123-135.-.
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c.
( 1 ) Singapol
Singapore is a city-state that is responding aggressively to climate
change and is a prime example of the importance of sustainable building
and energy efficiency in commercial real estate development. Singapore
offers stringent environmental regulations and incentives to promote
"green building, " which has had a significant impact on commercial real
estate developmen t.
In particular, large commercial mixed-use developments such as Marina
Bay Sands in Singapore have been designed to respond to climate change,
and sustainable buildings are increasingly valued in S i n g a p o r e's real
estate market. Marina Bay Sands was built using solar panels, energyefficient
cooling systems and recyclable materials, and these features
have made it highly sought-after by t e n a n t s . In addition to increasing
the value of the property, s u s t a i n a b l e development h a s also had
a positive impacton Singapore's global image.
5) Perspectives on case analysis
This case analysis of the impact of climate change on the commercial real
estate market illustrates several important points: first, corporate social
responsibility (CSR) can lead to long-term economic benefits by
strengthening a company's reputation and increasing consumer loyalty. 52)
Second, research on the primacy of green building in Singapore's real
estate market suggests that sustainable development contributes to
higher market values. 53)-.
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Thirdly, the configuration and risk management of real estate against
natural hazards due to climate change is becoming increasingly important,
which is an essential element to increase disaster resilience. 54)
Fourth, the alignment of energy policy and climate goals is a key
s t r a t e g y for sustainable development, which contributes to achieving
energy security and environmental protection simultaneously.55)
52) Islam, T., Islam, R., Pitafi, A. H., Liang, X., Rehmani, M., Irfan, M., & Mubarak, M. S.
(2021). The impact of corporate social responsibility on customer loyalty: The mediating
role of corporate reputation, customer satisfaction, and trust. Sustainable Production and
Consumption, 25, 123-135.
53) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
54) Ling, D. C., Robinson, S., Sanderford, A., & Wang, C. (2024). Climate change and
commercial property markets. Journal of Regional Science.
55) Elkhatat, A. M., & Al-Muhtaseb, S. (2024). Climate Change and Energy Security: A
Comparative Analysis of the Role of Energy Policies in Advancing Environmental
Sustainability. Energies.-.
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Finally, innovative technologies and designs for climate change adaptation
are reducing real estate operating costs,
They offer important opportunities to strengthen the competitive
position of organizations. 56) These factors provide important insights
for d e v e l o p i n g effective response strategies to climate change.
The important takeaway from these examples is that the impact of
climate change on the commercial real estate market varies widely.
Rising sea levels and natural hazards can reduce property values in areas
where they are a physical risk, and e x t r e m e weather events such as
h e a t waves can have a significant impact on a building's operating
costs and energy efficiency. However, real estate developers and tenants
w h o are proactive in responding to climate change can increase
property v a l u e s through s u s t a i n a b l e building a n d energy-efficient
d e s i g n .
In addition, a company's reputation and social responsibility in addressing
climate change also have a significant impact on real estate values.
Buildings that meet ESG criteria offer higher value to investors and tenants,
which ensures the l o n g - t e r m s t a b i l i t y of real estate assets. Policies
and legal regulations to address climate change are becoming a major
factor in shifting trends in the real estate market, and adapting to these
regulations is an important strategy to increase the value of commercial real
estate assets.
4. Climate Change Adaptation and the Future of the Commercial Real
Estate Market
Theimpact of climate change adaptation on the future of the commercial
real estate market is multifaceted, and these changes could result in a-.
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structural realignment of the market.
First, the increased demand for sustainable development and greencertified
properties increases their market value, which has been confirmed
in the case of Singapore. 57)
Secondly, stricter environmental regulations are forcing developers to
emphasize energy efficiency and environmentally friendly design, which
will contribute to building construction and long-term cost savings. 58)
Third, the increasing frequency of natural disasters due to climate change will
increase the demand for buildings of different construction, which will require
different risk assessments in different regions. 59)
Fourth, corporate social responsibility (CSR)improves corporate reputation and
increases customer and investor confidence,
56) Clayton, J., Devine, A., & Holtermans, R. (2021). Beyond building certification: The
impact of environmental interventions on commercial real estate operations. Energy
Economics, 93, 105039.
57) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
58) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations in
the commercial real estate market. Energy Policy.
59) bunten, D., & Kahn, M. E. (2017). Optimal real estate capital durability and localized
climate change disaster risk. Journal of Housing Economics, 36, 1-7.-.
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This is essential for gaining a competitive advantage. 60)
Finally, technological innovation and advances in energy policy will be
important factors in accelerating the transition to sustainable
energy and strengthening the sustainability of the commercial real
estate market. 61 )
Climate change is having a significant impact on the commercial real
estate market, and the market is likely to evolve in the future, centered on
climate change adaptation and sustainability criteria. In this s e c t i o n , w e
w i l l discuss the impact of climate c h a n g e a d a p t a t i o n on the
commercial r e a l e s t a t e market and how t h e market is l i k e l y
t o evolve i n t h e f u t u r e .
1) Responding to Climate Change and Changes in the Commercial Real Estate
Market
The effect of climate change regulations on the commercial real
estate market is increasing, emphasizing the importance of
sustainable building and energy efficiency. 62) Investors are
allocating more capital to sustainable development projects in light of
climate risk, which is leading to a shift in investment patterns. 63) In
addition, real estate values in climate-sensitive areas are likely to
decline, while properties with sustainable characteristics are more
likely to increase in value. 64) These changes are closely linked to
legislation and regulation, with governments tightening regulations to
address climate change. 65) Consumer demands are also shifting in favor
of environmentally friendly spaces, affecting the way commercial real
estate is designed and operated. 66) These changes are important for
long-term investment s t r a t e g i e s and are changing the structure and-.
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dynamics of the commercial real estate market. 67) The response to
climate change suggests that the commercial real estate market is
moving towards the simultaneous pursuit of sustainability and
economic value.
60) Islam, T., Islam, R., Pitafi, A. H., Liang, X., Rehmani, M., Irfan, M., & Mubarak, M. S.
(2021). The impact of corporate social responsibility on customer loyalty: The mediating
role of corporate reputation, customer satisfaction, and trust. Sustainable Production and
Consumption, 25, 123-135.
61) Elkhatat, A. M., & Al-Muhtaseb, S. (2024). Climate Change and Energy Security: A
Comparative Analysis of the Role of Energy Policies in Advancing Environmental
Sustainability. Energies
62) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations
in the commercial real estate market. Energy Policy
63) Feng, Z., Lu-Andrews, R., & Wu, Z. (2024). Commercial Real Estate in the Face of
Climate Risk: Insights from REITs. Journal of Real Estate Research.
64) Holtermans, R., Niu, D., & Zheng, S. (2024). Quantifying the impacts of climate shocks
in commercial real estate markets. Journal of Regional Science.
65) Elkhatat, A. M., & Al-Muhtaseb, S. (2024). Climate Change and Energy Security: A
Comparative Analysis of the Role of Energy Policies in Advancing Environmental
Sustainability. Energies
66) Coulson, E., Palacios, J., & Zheng, S. (2024). Climate change and real estate: An
introduction to the special issue. Journal of Regional Science
67) Cho, S., & Jung, J. (2024). Behavioral Finance Insights into Land Management:
Decision Aggregation and Real Estate Market Dynamics in China. Land.-.
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Climate change adaptation has become one of the key drivers of the
commercial real estate market. This is not just a
Sustainability has gone beyond responding to natural disasters or physical
risks to include sustainable development and operations that meet ESG
(environmental, social and governance) criteria. As a result, real estate
developers, investors, and tenants are increasingly making sustainability an
important evaluation criterion, which is c a u s i n g a significant shift in
market t r e n d s .
Carbon neutrality targets and green building developments With the
adoption of various policies aimed at carbon neutrality in the
international community, e f f o r t s to reduce carbon emissions are
a c c e l e r a t i n g in the commercial real estate market. Many countries
have set targets of zero carbon emissions by 2050, which has led
governments to tighten building regulations and promote technologies
that can reduce carbon emissions. In response, commercial real estate
developers are stepping up efforts to design green buildings and improve
the energy efficiency of existing buildings.
For example, LEED (Leaders hip in Energy and Environm ental Design)
certified commercial properties offer high value to investors, and in an
era where sustainability is emphasized, these properties have a
significant competitive a d v a n t a g e in the marketplace. In the future,
sustainable construction and operations to address climate change will
continue to be an important component of real estate value.
Assessing and Managing Climate Change Risks Climate change brings not
only physical risks to the commercial real estate market (e.g., flooding,
heat waves, sea level rise), but also transitional risks (e.g., regulatory
changes, changes in financial markets). As a result, the commercial real-.
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estate market requires a system that accurately assesses and manages
climate change risk. Assets located in climate-sensitive regions will be
subject to more rigorous risk assessments, and investors will price them to
reflect these risks.
These risk management and assessment systems will become increasingly
i m p o r t a n t to the real estate market in the future, and will be a critical
t o o l to help investors and d e v e l o p e r s respond to climate change
in a proactive way.
2) Growing demand for sustainable commercial real estate
Regulations and i n c e n t i v e s r e l a t e d to climate change are
becoming a n important factor in promoting sustainable b u i l d i n g
and operating practices in commercial r e a l estate. 68) Studies have shown
that the increased demand for sustainable real estate offers economic
benefits, such as lower operating costs through energy efficiency, which
leads to long-term investment attractiveness. 69) Another study found that
there is a "gray premise" that is sustainable.
68) Holtermans, R., Niu, D., & Zheng, S. (2024). Quantifying the impacts of climate shocks
in commercial real estate markets. Journal of Regional Science
69) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land-.
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10
This shows that the market value of the building is increasing. 70) This
sustainability trend indicates that the organization is
As part of its e f f o r t s to comply with environmental, social and
governance (ESG) standards, the company is increasingly investing in
sustainable real estate. 71) I n addition, increasing awareness of climate risk
is highlighting the i m p o r t a n c e of climate risk management in the real
estate market, which is leading to a shift in investment patterns. 72) These
factors are promoting the sustainable development of the commercial
real estate market and are expected to continue to do so in the future. 73)
The response to climate change has moved beyond short-term responses
and is becoming a medium- to long-term trend. In recent years, the
demand for sustainable buildings has skyrocketed, and this trend is here
to stay. The preference for sustainable buildings is strongly driven by
c h a n g i n g values among investors, corporations, and tenants. They
recognize tackling climate change as an important social responsibility, and
are therefore favoring sustainable commercial real estate.
Green Buildings and Tenant Demand The benefits of green buildings are not
just about reducing operating costs by increasing energy efficiency. Green
buildings also have a positive impact on employee satisfaction and
productivity. This is a major factor that drives companies to favor
environmentally conscious office space. In addition, sustainable buildings
can contribute to a company's ESG performance, which will f u r t h e r
increase the demand for leasing by companies.
ESG and the changing financial markets ESG criteria are having a
significant impact on the commercial real estate market. In particular,
financial institutions are increasingly scrutinizing investments in and
lending to climate-sensitive assets and restricting financing to assets that-.
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do not meet ESG criteria. This has led to a surge in demand for
commercial real estate that meets ESG criteria, which is driving up the
market value of these assets.
In addition, financial instruments such as green bonds are playing
an important role in promoting the development of green buildings. In
the future, the financial markets will continue to see the emergence
of various financial instruments to address climate change, which will
attract more funds to the commercial real estate market.
70) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
71) Liu, B., & Pan, X. (2024). Green finance, energy transition, and natural resources of
real estate sector: driving eco-sustainability and sustainable economic growth. Economic
Change and Restructuring, 57, 1-23.
72) Feng, Z., Lu-Andrews, R., & Wu, Z. (2024). Commercial Real Estate in the Face of
Climate Risk: Insights from REITs. Journal of Real Estate Research.
73) Elkhatat, A. M., & Al-Muhtaseb, S. (2024). Climate Change and Energy Security: A
Comparative Analysis of the Role of Energy Policies in Advancing Environmental
Sustainability. Energies-.
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10
3) Climate change adaptation and futures strategies
R e s e a r c h into climate change adaptation and future strategies i s being
conducted in a variety of fields and is becoming an e s s e n t i a l
consideration in the commercial real estate market. Research shows that
climate change is having a direct impact on the value and profitability of
commercial real estate, which highlights the importance of conducting
climate risk assessments to identify vulnerabilities and develop responses.
74) The demand for sustainable real estate is growing, which is contributing
to organizations adhering to ESG standards and adopting
environmentally friendly building designs. 75) The need to adapt t h e design
of infrastructure and buildings to cope with climate change and to
s t r e n g t h e n their resistance to natural disasters i s also being
e m p h a s i z e d . 76) Another study suggests that technological
innovation and energy transition will promote sustainable economic
growth, and that the use of renewable energy should be expanded. 77)
Finally, it is suggested that we should work with local communities t o find
common responses to climate change and p r o m o t e sustainable
development. 78) These s t r a t e g i e s are important not o n l y for the
commercial real estate market, but also for social development in
g e n e r a l .
Strategies for dealing with climate change are becoming increasingly
important in the commercial real estate market, driven by changes in
governments' policies and, by extension, by the commercial real estate
market. In this regard, s e v e r a l important strategies can be proposed.
Policy responses to climate change Governments are tightening their
policies to address climate change, which has a significant impact on the
commercial real estate market. Governments are introducing legislation-.
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and regulations aimed at reducing carbon emissions, increasing energy
efficiency, and using renewable energy sources, which are changing the
way commercial real estate is designed and operated. For example, the
European Union has set a target of reducing carbon emissions by 55% by
2030 and is introducing carbon t a x e s and emissions t r a d i n g
schemes to achieve this. These policies will be important benchmarks for
commercial real estate development.
Developing infrastructure t o adapt to climate change To reduce the
physical risks posed by climate change, commercial real estate
d e v e l o p e r s should e n h a n c e their i n f r a s t r u c t u r e to adapt
to climate change. For example, coastal commercial real estate can be
prepared for natural disasters by incorporating waterproofing systems and
earthquake-resistant designs. In addition, green spaces and water
management systems can be built to reduce urban heat islands and flood
risk.
74) Holtermans, R., Niu, D., & Zheng, S. (2024). Quantifying the impacts of climate shocks
in commercial real estate markets. Journal of Regional Science
75) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
76) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land.
77) Liu, B., & Pan, X. (2024). Green finance, energy transition, and natural resources of
real estate sector: driving eco-sustainability and sustainable economic growth. Economic
Change and Restructuring, 57, 1-23.
78) Akin, I., & Akin, M. (2024). Promoting sustainable practices through green investments
in the United Kingdom real estate industry. Sustainable Development.-.
49 -
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This will be an important tac tic.
II. λ Loan
1 . What the Commercial Real Estate Market Means
The future of the commercial real estate market is expected to be
significantly impacted by climate change, technological innovation, and
changing consumer behavior. Research suggests that as sustainable
building and energy efficiency become increasingly important, the
number of environmentally friendly development projects will increase,
which is likely to be an attractive f ac t or for i n v e s t o r s . 79) In
particular, the phenomenon of "green premiums" is emerging, whereby the
market value of buildings with environmental certifications is increasing. 80)
In addition, climate change regulations are changing the way real estate
operates, promoting more sustainable practices. 81) Societal changes, such
as the proliferation of remote work, are altering the demand for office
space and increasing the importance of real estate providing flexible
working environments. 82) Technological advancements will increase the
efficiency of real estate management and operations, and the adoption
of smart building and IoT technologies is likely to accelerate. 83) As
consumers favor sustainable spaces, this will change the structure and
functioning of the real estate market, pushing it toward simultaneous-.
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pursuit of environmental and economic sustainability. 84)
Climate change is fundamentally changing the way we understand and
approach the commercial real estate market. A strategic approach to
addressing climate change is not just about short-term cost s a v i n g s ,
b u t also aboutlong-term security.
79) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
80) Massimo, D., Paola, P. D., Musolino, M., Malerba, A., & Giudice, F. P. D. (2022). Green
and Gold Buildings? Detecting Real Estate Market Premium for Green Buildings through
Evolutionary Polynomial Regression. Buildings.
81) Akhtyrska, Y., & Fuerst, F. (2024). The effectiveness of climate change regulations in
the commercial real estate market. Energy Policy.
82) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land.
83) Clayton, J., Devine, A., & Holtermans, R. (2021). Beyond building certification: The
impact of environmental interventions on commercial real estate operations. Energy
Economics, 93, 105039.
84) Akin, I., & Akin, M. (2024). Promoting sustainable practices through green investments
in the United Kingdom real estate industry. Sustainable Development.-.
51 -
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10
It will play an important role in securing a static return on investment.
Assets that r e f l e c t climate change risk
Valuation, increased sustainable development, and growing demand
for commercial real estate that meets ESG criteria will be key drivers
of the commercial real estate market going forward.
Responding to climate change h a s become a necessity, not an option, and
this will result in a more s u s t a i n a b l e and resilient commercial real
estate market. With a proactive response to climate change, the commercial
real estate market of the future will b e a healthier, more competitive market.
Climate change is affecting the commercial real estate market in a variety
of ways, leading to significant changes in property values and investment
s t r a t e g i e s . Research shows that the increased frequency and intensity
of natural disasters increases the risk of declining property values in certain
regions, while the growing demand for sustainable buildings is driving up
the value of properties with energy efficiency and environmentally
friendly design. 85) The phenomenon of "green premium" underpins the
rising market value of sustainable buildings, which is influencing investors
to adjust their portfolios to account for climate risk. 86) As regulations to
address climate change become more stringent, properties that do not
comply with these regulations may see a decrease in value due to legal
liability or additional costs. 87) This is calling for a new approach to the
commercial real estate market that takes into account the long-term
stability and profitability of the market, increasing the attractiveness of investing
in sustainable properties that comply with ESG criteria. 88) The findings of
the study suggest that the commercial real estate market is moving
towards the simultaneous pursuit of sustainability and economic value. 89)-.
52 -
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10
85) Dell'Anna, F., & Bottero, M. (2021). Green premium in buildings: Evidence from the
real estate market of Singapore. Journal of Cleaner Production, 286, 125327.
86) Massimo, D., Paola, P. D., Musolino, M., Malerba, A., & Giudice, F. P. D. (2022). Green
and Gold Buildings? Detecting Real Estate Market Premium for Green Buildings through
Evolutionary Polynomial Regression. Buildings
87) Clayton, J., Devine, A., & Holtermans, R. (2021). Beyond building certification: The
impact of environmental interventions on commercial real estate operations. Energy
Economics, 93, 105039.
88) Li, B., Li, R., & Wareewanich, T. (2021). Factors Influencing Large Real Estate
Companies' Competitiveness: A Sustainable Development Perspective. Land
89) Akin, I., & Akin, M. (2024). Promoting sustainable practices through green investments
in the United Kingdom real estate industry. Sustainable DevelopmentSee Hun
I. National Statement
< Paragraph Pattern
Jang, Hee-Soon, Dictionary of Real
Estate, Seoul: Seoul, 201 7. Jang,
Hee-Soon, Real Estate Finance,
Seoul: Seoul, 2020.
Hee-Soon Jang and Sung-Jin Kim, Dictionary of Real Estate Terms, Seoul:
Buyeonsa, 2020.
< Thesis statement
"A human-centered algorithmic energy saving prediction model for
smart building implementation. Energy Saving
Prediction Model for Smart Building Implementation." Master's
thesis, Seoul National University, School of International Urban
Studies, 201 9.
"Comparative Analysis of the Impact of Green Building Certification on
Domestic Real Estate." Master's Thesis, Seoul National University,
Seoul, Korea, 2022.
< Thesis Statement
Kyung Min Kim . Sangmook Shin, Physical Impact of Urban
Spatial Structure on Commercial Real Estate Market Korean
Journal of Economic Geography, 1 16. 1 ( 201 3 ) , 71- 85.
Ahn Byung Chul . Jong Jin Kim, Macroeconomics changes on thecommercial real estate market 미 치 는 영 향에 A
Study on the Effects of Changes in the Commercial Real Estate
Market, Residential Environment (Monographs of the Korean
Society of Residential Environment), 1 4 4 ( 201 6) , 1 03- 11 7 .
< Internet Sites and Laws
U.S. National Oceanic and Atmospheric Administration, National Centers
for Environmental Prediction (NCEP), https: //www. weather. gov/ncep/-.
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II. Foreign Affairs
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