Extreme weather events are on the rise. From devastating floods and wildfires to record-breaking temperatures: the impact of climate change is becoming increasingly evident. For real estate investors, understanding and mitigating climate risk is no longer optional—it’s essential. Van Lanschot Kempen uses sophisticated climate data to assess the potential impact of natural hazards on valuation and price-in the risks. How do we approach this?
Why Climate data matters
Real estate investors are becoming increasingly aware of climate risks, which can impact property valuations and insurance costs and availability. In some US states, notably in Florida and California, landlords have difficulty obtaining coverage, due to increased weather events. Real estate professionals expect a similar impact in Europe in the near future (Green Street News, August 2025).
To be able to assess these risks and the resilience of real estate portfolios, climate data is crucial for real estate investors. It can provide insights into the potential risks and impacts of climate change on properties and - in the end- on portfolios. High-quality, forward-looking data allow us to quantify the expected risks from hazards such as hurricanes, floods and heatwaves.
By integrating climate risk data into our investment process, we aim to foresee the potential costs that come with these risks, such as higher insurance costs or lower rental incomes. This means we can make more informed valuation decisions and identify buildings that could end up as stranded assets at an earlier stage.
