Using data to evaluate physical climate risk
By Julie Manning, LaSalle Investment Management
Measuring physical climate risk is of growing importance to institutional real estate managers and their investors, at both the individual property and portfolio levels. Of the $850 billion of commercial real estate assets tracked by NPI, LaSalle estimates $285 billion, or 34%, is situated in high and medium-high climate risk zones in the US.
Increasingly, being able to accurately assess whether or not assets are at risk, and knowing how to price that risk into management strategies, are essential parts of operating a portfolio. While data is key to this assessment, understanding how to leverage the right data is even more important.
With so much climate risk data available in the market, how can organizations manage and find data that gives them manageable, impactful and usable insights? And more importantly, what should managers do with these insights?
In this report, Julie Manning, Global Head of Climate and Carbon for LaSalle Investment Management, provides an industrywide framework for commercial real estate that addresses how data can be used in decision-making and supporting investment performance.
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