Climate Risk Now A Threat To Asset Viability Across EMEA, Says Colliers

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• Climate Risk Now A Threat To Asset Viability Across EMEA, Says Colliers

24 June 2026

Climate and environmental pressures are intensifying across EMEA and are becoming harder for real estate leaders to ignore. New research from Colliers shows climate risk in real estate is increasingly influencing location decisions, operating performance and long-term asset strategy.

Colliers’ report, Building Resilience: 5 Megatrends Redefining Corporate Real Estate, identifies climate risk as one of five global megatrends redefining corporate real estate strategy. The research highlights two converging forces: the growing physical impacts of extreme weather events, and rising regulatory and stakeholder expectations for action, both of which are challenging the future viability of parts of the existing building stock.

In EMEA, the report finds many organisations remain underprepared. Despite increasing awareness of exposure to heat, flooding and environmental disruption, climate risk is still frequently treated as a sustainability issue rather than embedded into core location strategy, lease decisions and capital planning. Leaders, the report notes, often remain in a ‘wait and see’ mode.

This gap between awareness and action carries material implications. In some markets, new ESG and environmental requirements could render a significant proportion of buildings obsolete over the coming years without intervention. At the same time, shifts in climate patterns are altering the risk profile of locations previously considered comparatively resilient.

The report underlines the need to build climate literacy and resilience into everyday decision-making, embedding physical risk awareness across real estate, facilities, finance and operations.

Translating this risk into the EMEA context, Sam Addison, Head of Project Management, EMEA at Colliers, argues that many organisations are still underestimating the operational consequences of physical climate exposure.

For real estate decision makers, the report’s guidance is clear. Climate risk should be treated as a core strategic input, with structured assessments of location and asset vulnerability, and defined strategies for retrofitting, relocation or divestment where exposure cannot be mitigated effectively.

The research also highlights the opportunity presented by new technologies, materials and design approaches. Nature based solutions, such as landscaping to reduce temperatures or improve water management, are gaining traction as cost-effective, non-invasive ways to reduce exposure while enhancing the working environment.

Overall, the message from the report is one of urgency grounded in pragmatism. Organisations that integrate climate risk into real estate decision-making today will be better positioned to protect asset performance, operational continuity and long-term value as environmental pressures intensify.

Sam Addison, Head of Project Management at Colliers, said: “While progress on decarbonisation is encouraging, there remains a significant gap in recognising how physical risks such as flooding and extreme heat can affect buildings, supply chains and the people within them. Over the next five years, these risks could become critical.”

Addison added: “Organisations should not be signing leases without understanding the climate risk profile of the asset. A risk-based approach helps prioritise capex, inform portfolio strategy and avoid locking into assets that will underperform.”

Picture: An image of a digital panel displaying the world map with a heatmap overlaid, alongside other graphs and charts.

Article written by Dave Mapps | Published 24 June 2026

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