Four metro areas, including Portland, stand out as having the least overall environmental risk for investors in commercial real estate and multifamily, according to a new rating from Yardi Matrix.
The company said they did the study because events over the past year “have brought environmental, social and governance (ESG) front of mind for investors and experts in commercial real estate. “
Yardi Matrix said more and more weather-related disasters “that produce billions of dollars of property damage, changes in work practices spurred by the COVID-19 pandemic, and recognition of the need for equity and diversity have created an urgency for businesses to act” on environmental, social and governmental criteria.
The report also cites the 2020 Urban Land Institute report on Climate Risk and Real Estate: Emerging Practices for Market Assessment. That study by real-estate investment-management firm Heitman and the Urban Land Institute said, “Leading real-estate investment managers and institutional investors are increasingly recognizing climate risk as a core real-estate issue that is beginning to affect their decisions at the market level as well as at the asset level. As this market-scale analysis of climate risks and cities’ resilience strategies advances, investors will better assess both the economic impact of climate-related events and the cost and ability of cities to mitigate the impact of climate change through their resilience strategies.”
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