Assessing the Physical Risk of Climate Change for Commercial Real Estate

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In this webinar, we will discuss the physical impact of extreme climate conditions on CRE property performance. We will show through our empirical study that catastrophic weather events have historically affected the ability of commercial properties to generate rental income. Consequently, current CRE investments may bear higher risk than expected due to the increasing frequency and intensity of such events due to climate change. We will demonstrate our approach to assess the climate risk exposure of CRE portfolios which may be beneficial to CRE lenders and investors.

Topics of discussion include: 

  • Empirical studies show that catastrophic weather events such as floods, hurricanes, and wildfires can cause immediate and significant damages to CRE assets, reducing rental income and driving up operation costs.
  • Due to climate change, such events are taking place with increasing frequencies and intensities, leaving a large portion of CRE investments highly exposed to their physical impacts.
  • Through rigorous assessment of climate risk exposure, CRE lenders and investors can be better prepared for future climate impacts on their portfolios.
  • Speakers keyboard_arrow_down
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    Eric Bao Director-Research Moody's Analytics
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    Alison Heslin Assistant Director-Research Moody's Analytics