Investors are rethinking sustainability in their bids for new properties, with factors like improving resilience, reducing carbon emissions and enhancing employee well-being top of mind, according to a new report from JLL. 

"The role of buildings in creating a more sustainable future is now in the spotlight," says Lori Mabardi, ESG research director at JLL. "Stakeholder pressure is rising where regulators, occupiers, lenders and investors are expecting more from the built sector."

Mabardi says more and more owners are assessing the direct impact of climate change on their portfolios early and modelling future risk: "We've seen extreme weather grow four-fold in the past four decades in the U.S alone," she says. "Real estate investors, landlords and occupiers are increasingly understanding that resilience needs to come into the equation.  This could mean taking measures to address areas of weakness in the asset itself, or taking a portfolio view and evaluating exposure to a number of risks like wildfire or drought."