Despite the White House’s efforts to roll back sustainability policies and the term “climate change,” the real estate sector, responsible for 40% of global emissions, is retracting its commitment to decarbonization. Major players like the Canada Pension Plan Investment Board and Wells Fargo have abandoned their net-zero goals for 2050.

The global Net-Zero Banking Alliance collapsed this year due to political pressures, with rising interest rates, macroeconomic volatility, and higher insurance costs taking priority over carbon reduction. Nevertheless, many insurance companies and tenants still prioritize resilient operations.

Lending is on the rise, with CBRE’s Lending Momentum Index reaching its highest level since 2018, showing a 112% year-over-year spike in Q3. Permanent loan financing grew by 36% year-over-year, and investors are increasingly leaning towards floating-rate loans amid expectations of falling interest rates.

In industrial real estate, net absorption hit its strongest quarter since 2023, with 36 million square feet absorbed in Q3. While vacancy rates edged up to 7.5%, leasing activity increased significantly. Construction remains at its lowest level since 2018, but Newmark is declaring that stabilization is finally here.

Source: Bisnow.com

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