ABSTRACT
This chapter introduces the fertile topic of climate-related 'stranded assets' into the heterogeneous global real estate asset class. It focuses on the issue of climate-related risk and opportunity, primarily the idea that climate change policy and associated environmental risk factors could induce the stranding of some conventional real estate assets. The chapter argues that stranded assets are not new in real estate, as the changing consumer demand of occupiers has regularly rendered property assets redundant or obsolete – exhibiting the creative destruction outlined by Joseph Schumpeter. It utilises the outputs of international building energy performance legislation to develop a model for understanding climate-related stranded asset exposure and sets out a framework for further research into the real estate asset sector. The tackling climate-related stranded assets in the real estate sector must be identifying their existence. The chapter concludes with a research agenda for stranded assets in global real estate and some opportunities relating to climate-related stranded assets.
