Climate change may trigger a significant shift in real estate demand, says a new report from the Urban Land Institute and Heitman, a real estate investment management firm.

Real estate investors should continue to build their capacity to assess and manage migration-related and broader market-level investment risks and should actively understand the climate change adaptation needs of key markets, the report recommends.

"The real estate sector is reaching a crucial stage in the evolution of its approach to climate risk," says ULI's global CEO, Ed Walter. "We are coming to understand that leadership from the real estate investment industry is essential for society's approaches to climate change to be effective, efficient, and equitable, versus deferring difficult decisions and displacing those who cannot afford to adapt.