Some 73% of UK institutional real estate investors and property professionals have said they expect more commercial property investors and buyers to walk away from commercial real estate with poor ESG performance.
The findings from Deepki shared exclusively with Property Week showed that over the next three years, 82% of respondents expect this trend to increase. Furthermore, 75% of institutional investors and landlords are looking to sell commercial real estate assets with poor ESG credentials.
Katie Whipp, head of Deepki UK, said: “Our research shows that ESG is now having a direct impact on the ability to sell UK commercial real estate sector assets. This sentiment was echoed at COP26, where there was growing urgency in the sector for climate change action.
“Many investors and buyers are now voting with their feet and walking away from deals where ESG credentials are not good enough and owners are seeking to divest assets that perform poorly, underlying the fact that sustainability is not a choice but an imperative.”