Attorneys Discuss Climate Change Impact on Real Estate Investing in Bloomberg Law
In an article for Bloomberg Law, real estate investment and transactions partners Peter Alpert and Dan Stanco, and associates Jacob Schwartz and Cory Steinberg explore how climate change is impacting the real estate market.
The authors argue that “as extreme weather becomes more common, real property assets face both physical risks—including floods, fires, hurricanes, increased heat, and rising sea levels—and ‘traditional’ risks related to societal reactions to climate changes. These including the cost of complying with climate-focused regulation, adapting to new consumer and market behavior, and financing the resilient design of new structures or adaptive retrofits to existing ones.’”
Stressing the importance of recognizing timely risks and opportunities, the authors note, “assets purchased today will be sold into a market far more conversant with and sensitized to climate risk, and those who incorporate climate considerations into standard diligence now—in 2023, not 2024—will ultimately see a large return on this relatively minor investment.”