Just as households prepare for emergencies, investors need to prepare for the impacts of climate and market changes.
Real estate is on the frontlines of these challenges. From hurricanes in Florida to wildfires in California, climate risks are already reshaping property values. Climate-resilient buildings can protect portfolios and even create opportunities for growth.
Why resilience matters in real estate
Real estate isn’t an abstract asset class. It’s physical, place-based, and highly exposed to environmental risks. For investors, that means resilience is no longer optional.
- Rising climate costs: Hurricane Ian caused billions in damages in 2022, while wildfire-driven insurance withdrawals are reducing property values in high-risk areas.
- Insurance pressures: As coverage becomes more expensive or unavailable altogether, properties without resilience upgrades are becoming harder to sell or finance.
- Investor demand: Global tenants and investors increasingly favor climate-ready buildings, leaving underprepared assets at risk of lagging behind.
What climate-ready buildings look like
Resilient properties don’t just withstand shocks; they often operate more efficiently and hold their value.
Features include:
- Energy efficiency: Cuts costs and reduces exposure to rising energy prices.
- Water recycling and stormwater management: Essential in regions facing droughts or heavy flooding.
- Structural resilience: Engineering upgrades that account for earthquakes, storms, and heat stress.
- Tenant health and safety: Indoor air quality, accessibility, and adaptable building design.
For example, San Francisco’s Salesforce Tower, a LEED Platinum skyscraper, uses 30% less energy than the average office, recycles millions of gallons of water, and is designed for seismic resilience. Its sustainability upgrades make it both a financial and physical stronghold.
How advisors can frame resilience with clients
Talking about climate resilience doesn’t have to mean overwhelming clients with technical detail. Instead, frame it as good risk management and long-term value creation.
- “Preparedness” as a metaphor: Just like families prepare for emergencies, portfolios should prepare for climate shifts.
- Resilience = stability: Properties designed for resilience can often continue operating while other buildings need to close for repairs.
- Upside opportunity: Climate-ready buildings are better positioned to withstand weather-related shocks, meet regulatory standards, and hold long-term value.
Resilience is readiness
Climate change isn’t a future problem. It’s already influencing property markets today. For advisors, integrating climate-ready real estate into portfolios is less about prediction and more about preparation.
By positioning resilience as both a risk management strategy and an investment opportunity, you can educate clients about the financial benefits of sustainability.
At Vert, we focus on real estate investments that integrate sustainability to improve financial outcomes. Our goal is simple: to help advisors offer solutions that prepare clients for tomorrow.
See climate-ready investing in action: Case Study: Salesforce Tower
Vert Asset Management is a sustainable real estate investment manager dedicated to helping financial advisors build resilient, future-ready portfolios. We connect institutional-quality investments with the long-term goals of clients, focusing on both financial returns and sustainability.
Investors should consult their investment professional prior to making an investment decision.
The information contained in linked articles was obtained from various sources. Vert Asset Management LLC (“Vert”) does not guarantee the accuracy or completeness of information provided by third parties. The information in the articles are given as of the date indicated and believed to be reliable. Vert assumes no obligation to update this information, or to advise on further developments relating to it.
Vert Asset Management, LLC, is an investment advisory firm registered with the Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the adviser or investment adviser representative has attained a particular level of skill or ability. The oral and written communications of an adviser provide you with information about which you determine to hire or retain an adviser. ADV Part 2A can be obtained by visiting adviserinfo.sec.gov and searching for our firm name. ADV Form 2B is available upon request. Neither the information nor any opinion expressed is to be construed as solicitation to buy or sell a security or personalized investment, tax, or legal advice.
