PERE’s 2025 Sustainable Investing report charts the industry’s shift from rhetoric to results
As climate pressures intensify and regulations tighten, sustainability has become a defining lever of value creation rather than an ancillary objective. Investors and managers are embedding environmental ambition earlier, using technology to accelerate decarbonization and reassessing resilience amid insurance volatility and physical risks. But challenges persist, from navigating political headwinds to confronting widening performance gaps between green buildings and stranded assets.
FURTHER ANALYSIS
PAST REPORTS
Sustainably-minded private real estate investors face something of an uphill struggle. ESG commitments remain relatively popular, but the real estate industry’s sustainability leads themselves are feeling burned out and frustrated by the difficulty of achieving impact. Plus, plenty of significant challenges remain at the property level, from stranded asset risk to problems accounting for embodied carbon.
Sustainability has been a growing concern over recent years and is frequently cited as a top priority by managers and investors. From simple but effective steps such as turning down the thermostats in shopping centers to more advanced measures such as fitting solar panels on the roofs of logistics assets, there are many ways managers can make buildings more sustainable, and PERE’s Sustainable Investing report is ripe with them, as it is with investor perspectives and the latest developments on standardizing carbon accounting and disclosures.
