R
ecent sustainability reports show that real‑estate owners are moving into a mature phase of decarbonization. Large REITs and institutional landlords are shifting from portfolio‑wide climate targets to detailed asset‑level planning, compliance modeling, and capital allocation.

    David Maguire, CBRE’s global head of sustainability solutions, notes that many REITs have already set high‑level goals. “They’re now implementing them, integrating decarbonization targets with capex planning at the asset level,” he says.

    Investor expectations, occupier objectives, disclosure mandates and green‑finance frameworks are driving planning down to individual buildings. Advances in metering technology and building‑management software (BMS) allow owners to collect and analyze richer data streams, enabling action at the building level. The business case for each intervention hinges on risk mitigation, asset protection, increased net operating income, and higher exit value.

    GRESB, the sustainability consultancy that benchmarks real‑asset performance, has also moved toward granularity. “We used to set portfolio‑level targets and then roll them out asset by asset,” says Victor Fonseca, senior associate for real estate at GRESB. “Now investors demand a bottom‑up approach.” Since 2020, GRESB has collected asset‑level data, and in 2024 it began scoring it. Regulation often lags behind industry leaders, but institutional investors drive both regulation and market practice. REITs that differentiate themselves attract sophisticated global investors who focus on long‑term carbon risks and climate‑related physical threats.

    Examples of asset‑level planning include Ventas, an S&P 500 REIT with a diversified healthcare portfolio, which has drafted decarbonization plans for over 900 properties, covering energy efficiency, renewable energy, electrification, and refrigerant management. Logistics giant Prologis is developing similar plans for each property, aligning capital upgrades with regulatory timelines, customer needs, and projected utility decarbonization. Vornado Realty Trust completed a building‑decay tool in 2024 to model capital energy‑efficiency projects and now holds annual asset‑level sustainability meetings, collaborating with engineering and facilities teams on energy‑use reduction.

    Not all owners are ready for building‑by‑building planning. While some have robust data‑management systems, many lack reliable tenant utility data, undermining asset‑level modeling. Nevertheless, the pull toward finer‑grained decarbonization planning and action is clear and growing.