Cushman & Wakefield: How Real Estate can Avoid Climate Risks

Cushman & Wakefield has released what it says is the world’s most detailed data set on physical climate risk across the logistics and industrial (L&I) real estate sector. 

Covering more than 7,300 buildings, 306 submarkets and 120 cities worldwide, the data offers an unparalleled view into how physical climate hazards, from flooding and heat to wildfire and wind, are reshaping the resilience and long-term value of industrial assets.

A new era of risk 

Historically, climate exposure has been overlooked in logistics and industrial transactions, despite the sector’s 43% growth in investment activity over the past decade. 

This new data can enable investors, landlords and occupiers to quantify, compare and respond to risk at the asset level, with hazard scores mapped by submarket and individual site.

This level of granularity reveals vast contrasts within the same region. 

In Chicago, flood risk varies dramatically from one building to the next. 

In Asia, already heat-prone markets like Singapore are projected to face even more severe conditions by 2050. 

Meanwhile, Europe’s drought exposure is growing fast, especially across key markets in Germany and the UK.

“Climate risk is now quantifiable and actionable,” Jessica Francisco, Chief Sustainability Officer at Cushman & Wakefield, wrote on LinkedIn.

“Our new Logistics & Industrial (L&I) Climate Risk Outlook is the most detailed asset-level dataset ever released for the L&I sector. 

“Covering 7,300+ buildings across 120 cities, this report is a game-changer for our clients seeking to integrate climate resilience into investment and operational strategy. 

“Whether you’re an occupier or an investor, this is your new go-to resource.” 

Sustainability across the value chain

Cushman & Wakefield is aligning its own operations with global climate goals. 

The company has set targets validated by the Science Based Targets initiative (SBTi), including:

• Reducing absolute Scope 1 and 2 GHG emissions by 50% across its corporate offices and operations by 2030 (from a 2019 baseline)
  
• Engaging key clients, representing 70% of emissions at managed properties, to set their own science-based targets by 2025
  
• Achieving net zero value chain emissions (Scopes 1, 2 and 3) by 2050.

Through its B2B sustainability model, Cushman & Wakefield hopes to deliver comprehensive support across the property lifecycle, from planning and transactions to design and operations. 

The company’s services include:

• Renewable energy sourcing
• Sustainable workplace design
• Green cleaning programmes
• Operational benchmarking. 

Bespoke sustainability strategies are developed for clients, including resource efficiency, carbon reduction through reuse and recycling and real-time tracking of energy, water and waste performance.

From data to strategy

The report goes beyond hazard mapping. 

Cushman & Wakefield has also been reappointed to the Homes England Strategic Research, Economics and Evaluation Framework – the UK Government's housing and regeneration agency.

This initiative is responsible for targeting positive market change and the housing-led regeneration of towns and cities across the country, helping to improve neighbourhoods and grow thriving communities.

“This is the only national economic advisory framework of its kind, and our appointment is testament to our successful track record and strong credentials in this space, as well as our ability to combine core economic appraisal and research services with wider property market expertise,” says Ben Pretty, Partner in Cushman & Wakefield’s Land, Development & Planning Team and Framework Lead. 

“It presents exciting opportunities to support a government committed to housing delivery and national economic growth. 

“Demonstrating the value for money of public investment will be paramount and we very much look forward to supporting clients to drive housing delivery, regeneration and additional social and economic outcomes for the UK economy.”

The report connects risk exposure to business metrics such as operating costs, capital expenditure, leaseability and portfolio value. 

For example, hotter climates mean higher cooling costs, infrastructure upgrades and potential delays in leasing.

By embedding climate data into investment decisions and long-term asset planning, Cushman & Wakefield hopes to enable clients to reduce exposure, protect value and align with evolving regulatory frameworks such as the EU Taxonomy and CSRD.

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