L
ondon’s Cadogan Hotel hosted a closed‑door summit where senior figures from RICS, PAREF Group, BuildingMinds, Arcadis, Leon Capital, VerusSol, GRESB, Longevity Partners and Optiml converged to tackle the commercial real‑estate sector’s looming crossroads. ESG mandates, tightening retrofit schedules and a shift in investor appetite are forcing a rapid transformation. The leaders agreed that the industry can turn these pressures into a chance for innovation, partnership and forward‑looking capital deployment.

    “Portfolios are not simply moving toward a future state – many assets demand immediate action to stay marketable,” said Dr Jens Hirsch, Chief Scientific Officer at BuildingMinds. The same urgency was echoed by RICS Acting President‑Elect Maureen Ehrenberg, who warned that mortgage defaults are surging and that investors are bundling shopping centres and office blocks to sell at rock‑bottom prices. “The capital required for conversion or upgrade is simply not available,” she added, urging owners to conduct swift risk assessments because some portfolios may already be technically insolvent without realizing it.

    Ehrenberg also highlighted the expansion of risk beyond energy efficiency. “Insurers are re‑pricing in real time, taking into account seismic activity, drought, aging infrastructure and climate migration,” she said. “Owners are now evaluating their holdings against 14 distinct risk dimensions, and the numbers are alarming.”

    Data remains a critical bottleneck. Longevity Partners’ Head of Data & Digital Transformation, James Fenna, criticised the manual collection of invoices and tenant data across portfolios of more than 100 buildings. “This model is unsustainable,” he said. “Banks and ESG lenders now require automated, verifiable data pipelines before they will unlock finance.” Fenna urged a shift to live metering and direct database integration, warning that without real data, decarbonisation efforts will remain theoretical.

    The need for high‑quality data also applies to AI. BuildingMinds’ Chief Data & Analytics Officer, Dr Michael Soucek, cautioned that “you cannot AI your way out of garbage data.” He stressed that AI can only be as good as the data feeding it.

    From a financial perspective, PAREF Group’s Executive Investment Director, Jacek Kulakowski, argued that brown‑to‑green retrofits are not merely regulatory compliance but a value‑creation strategy. “When backed by credible data and governance, these projects can outperform through increased tenant demand, regulatory alignment and a tangible green premium,” he said.

    Regulation, according to GRESB’s Chief Customer Success Officer Mathilde Petriat, sets a minimum floor but fails to reward those who exceed it. “Competitive advantage will come from measured performance and continuous innovation,” she noted. Consistent frameworks are essential to distinguish mere compliance from true leadership.

    Arcadis’ Head of ESG Investment Advisory & Strategy, Trisha Taneja, explained how ESG data influences capital access and pricing. “Portfolio managers who demonstrably improve ESG scores can diversify their funding sources, especially in Europe,” she said. “While ESG data may not always move valuations directly, it does affect pricing and investor due diligence. Without credible data, improvements are not reflected in purchase prices.”

    The summit produced a set of actionable recommendations:

    * **Investors** – Conduct comprehensive ESG and mortgage exposure reviews across entire portfolios; the transition will determine survival.

    * **Asset owners** – Install metering, digitise emissions data and implement transition strategies; delays translate into capital loss.

    * **Regulators & governments** – Standardise valuation risk models, accelerate retrofit incentives and enforce ESG audit compliance.

    * **Pension funds** – Scrutinise sustainability plans and exit exposure where transition is unverifiable.

    Ehrenberg summed up the urgency: “Buildings are being devalued, tenants are walking away and insurers are red‑lining entire asset classes. This is not a future problem – it is happening now.”

    **About BuildingMinds**

    BuildingMinds is a SaaS provider that delivers a data‑driven platform for optimizing building performance and sustainability. Its technology and analytics enable owners and managers to monitor, analyse and improve assets, supporting a more sustainable, data‑centric real‑estate industry. For media or general inquiries, contact [email protected]