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BUILDING PERFORMANCE. UNLOCKING VALUE.
Sea Level Rise Gets Real (Estate)
April 2019
RE TECH ADVISORS / RETECHADVISORS.COM 2
Sea Level Rise Gets Real (Estate) National Adaptation Forum April - - PowerPoint PPT Presentation
Sea Level Rise Gets Real (Estate) National Adaptation Forum April - - PowerPoint PPT Presentation
Sea Level Rise Gets Real (Estate) National Adaptation Forum April 2019 BUILDING PERFORMANCE. UNLOCKING VALUE. About RE Tech Advisors Advisors supporting the fiduciary and investment objectives of commercial real estate leaders and market
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RE TECH ADVISORS / RETECHADVISORS.COM 3
Institutional real estate investment
Re Real estate investment “funds” ~
Mutual Fund
(Stocks, Bonds)
Real Estate Fund/REITs
(Buildings)
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RE TECH ADVISORS / RETECHADVISORS.COM 4
Introduction
§ Drivers of increased interest and discussion on climate risk in real estate:
Resilience Module Recent events
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RE TECH ADVISORS / RETECHADVISORS.COM 5
About TCFD
§ Types and examples climate risks to be disclosed:
Source: Task Force for Climate-Related Financial Disclosures
Transition Risks Physical/Operational Risks
Policy and Legal Risks Technology Risk Market Risk Reputation Risk Acute Risk Chronic Risk
Examples:
§ Carbon tax § Renewable energy mandates § Energy disclosure mandates § Land use policies § Litigation
Examples:
§ Building or system
- bsolescence
§ Modernization costs § “Stranded assets” § Operational efficiency § Cost competitiveness § “Creative destruction”
Examples:
§ Supply/demand shifts § Regional economic disruption § Migration shifts, new demographic patterns
Examples:
§ Community and public relations § Brand mgmt. § Political influence § Customer loyalty
Examples:
§ Hurricanes, cyclones § Flooding § Wildfires § Tornados, windstorms § Landslides, avalanches § Extreme snowfall
Examples:
§ Sea level rise § Drought § Heat waves § Water scarcity § Food security
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RE TECH ADVISORS / RETECHADVISORS.COM 6
Initial real estate research
“Based on our analysis, National Real Estate Advisors does not invest in South Florida…” “...insurance as the main protection for asset value is not an effective solution to mitigate the risk of devaluation…” “Successful real estate projects depend
- n the long term stability and
prosperity of cities.”
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RE TECH ADVISORS / RETECHADVISORS.COM 7
Climate risk exposure vs. market allocation
% of total value at risk % of total market allocation by asset value
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% D e n v e r
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BUILDING PERFORMANCE. UNLOCKING VALUE.
Thank you!
Jack Davis
Director of Program Development
jdavis@retechadvisors.com