Real estate investors turn to lawyers after ‘huge’ CO2 shock

-- Real estate investors already battered by high interest rates now face the prospect of significant write downs triggered by new European regulations. Real estate investors already battered by high interest rates now face the prospect of significant write downs triggered by new European regulations. “The reality is there will be some who simply can’t afford or would choose not to comply with the legislation directive on the basis that paying a penalty is, at least in the short term, easier than having to spend a huge amount of your reserves on bringing your stock up to grade.” For real estate investors, the new wave of green requirements adds to the fallout from higher interest rates. “However, the local office supply composition restricts the scope for occupiers to choose certified buildings.” Demand for green properties by the EU’s biggest companies currently exceeds availability by more than 50%, according to a November report by Jones Lang LaSalle Inc. For now, real estate investors are just hoping the wider economic situation improves and softens the blow of the regulatory shock ahead.