Climate Core Capital is an investment management firm focused on climate-driven theses within the built environment. The firm’s mission is to move capital into locations that can thrive alongside recurring climate risk.
What Does a Changing Climate Mean For Real Estate?
| 01 |
Real estate has a problem.
| 02 |
Financial markets, investors and communities will respond to different incentives.
| 03 |
A climate ‘risk off’ real estate asset class with stable cash flows is available for no premium.
Why?
Firms and households can adapt to climate change in a way fixed assets cannot. The frequency and intensity of climate change, in both disaster and slow onset formats, places new pressures on the asset class, with evidence of repricing already underway in early exposure markets.
Why?
Lenders will adjust the cost and availability of debt to reduce exposure. Insurers will reprice or withdraw coverage if their balance sheet risk outweighs reward. Local governments will need to increase property taxes to invest, adapt or risk becoming underfunded or stuck or both.
Why?
It is not possible to time the exit. It is possible to diversify and de-risk with confidence at no premium.
