New Resource Aims to Protect CRE from Escalating Climate Risk

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Commercial real estate insurance premiums have surged 88% nationwide in the past five years, leaving developers, investors and owners increasingly at risk.

And insurance costs are expected to double by 2040 for commercial buildings in the United States. So managing climate risk is growing increasingly important.

A coalition convened by The Resiliency Co. that includes JLL, Ryan Cos. US and the Urban Land Institute recently published a free playbook that it says offers a practical method for turning climate resilience into a competitive advantage.

“We initiated this effort because a reactive, compliance-based approach to resilience is no longer sufficient,” said Abby Ross, CEO of The Resiliency Co. She noted the new playbook represents a shift in mindset from viewing resilience as a “cost to be managed” to seeing it as a core driver of asset value, investor confidence and long-term profitability.

Drawing on insights from 55 industry leaders across design, construction, real estate, finance and insurance representing a combined $2.5 trillion in market capitalization, the playbook offers a framework to connect stakeholders and facilitate risk mitigation throughout the development lifecycle.

“This playbook, which outlines best practices and supportive tools, is the most cohesive document we have at our disposal to evaluate joint mitigation options and decide the right next steps in creating a more climate-resistant CRE industry,” said Joe Rozza, chief sustainability officer at Ryan Cos.

Janika McFeely, vice president and co-lead of JLL’s Climate and Decarbonization Practice, said the playbook demonstrates that forward-thinking risk management is not merely defensive, “it’s a strategic differentiator that unlocks premium valuations, enhanced access to capital and long-term market leadership in an increasingly challenging environment.”