There’s a ‘perfect storm’ heading for the commercial real estate market. Office spaces in city centers are sitting vacant. And more than $2.5 trillion in commercial real estate loans will be due for refinancing in the next four years. If building owners can’t refinance at today’s higher interest rates, the resulting crisis could ripple out to drag down the entire economy.
Local and state governments have a key role to play in both warding off this looming crisis and meeting their decarbonization goals. Tweaking regulations can make it more cost-effective for building owners to renovate older buildings to meet new energy-efficiency standards. Renovating old buildings can reduce energy use citywide, and also avoids the emissions generated by new construction.
There are a number of levers regulators can pull to make renovations more cost-effective for building owners. Our co-founder Trevor Dryer took a look at 3 key questions that could make or break the commercial real estate market, and net-zero goals, in his most recent Forbes Tech Council post.
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