R
ecent sustainability reports reveal that real‑estate owners are entering a mature phase of decarbonization. Large REITs and institutional landlords are shifting from portfolio‑wide climate goals to detailed asset‑level plans, compliance models, and capital allocation strategies.

    David Maguire, CBRE’s global head of sustainability product, notes that many owners have set high‑level targets and are now integrating those goals into asset‑specific capital expenditure plans. “The business case for each intervention now hinges on risk mitigation, asset value protection, and the potential to boost net operating income and exit value,” he says.

    Investor expectations, occupier objectives, disclosure mandates, and green‑finance frameworks are driving this granular approach. Advances in metering and building‑management software enable owners to collect and analyze richer data streams, facilitating action at the building level. GRESB, which sets standards for real‑asset performance, has also moved toward granularity. Victor Fonseca, GRESB’s senior associate, explains that investors now demand bottom‑up targets, and GRESB began collecting and scoring asset‑level data in 2024.

    Regulation often lags behind industry leaders, Fonseca adds, but institutional investors shape policy, which in turn influences broader market practices. REITs that differentiate themselves by offering detailed decarbonization plans attract sophisticated global investors who focus on long‑term carbon and climate risks.

    Examples of this trend include:

    * **Ventas** – a diversified healthcare REIT with over 900 properties – has drafted individual decarbonization plans covering energy efficiency, renewable energy, electrification, and refrigerant management.

    * **Prologis** – a logistics real‑estate giant – is developing asset‑level roadmaps that align capital upgrades with regulatory timelines, customer demands, and projected utility decarbonization.

    * **Vornado Realty Trust** – an office and retail owner – launched a building decarbonization tool in 2024 to model capital energy‑efficiency projects and holds annual asset‑level sustainability meetings with engineering and facilities teams.

    Despite these advances, many owners still lack robust data‑management systems. While mechanical asset records may be comprehensive, tenant utility data is often unreliable, hindering accurate asset‑level modeling. Nevertheless, the momentum toward fine‑grained decarbonization planning and execution is unmistakable and continues to grow.