Posted 2/19/2024, 7:31:00 AM
EU Building Energy Rules Threaten Commercial Property Crash
- Commercial real estate faces plunging values as buildings fail to meet new EU energy efficiency rules
- 85% of EU buildings were built before 2000 and 75% have poor energy performance
- Buildings that can't be renovated may end up "stranded assets" that are impossible to rent, sell, or insure
- Banks and investors now model climate risk to identify when buildings will become stranded and worthless
- Firms like Hibernia aim for net zero buildings by 2030 to attract green loans, but wider market faces valuation crash