13 Jan 2025

This paper aims to outline key principles for addressing potential risks associated with the economic stranding of real estate assets.

The topic of asset stranding in real estate has been gaining attention, fueled in part by the concept of "carbon stranding" introduced by the Carbon Risk in Real Estate Monitor (CRREM). Beyond carbon-related risks, other types of asset obsolescence are also impacting property values significantly. These combined risks are raising important questions about the broader issue of asset stranding.

In this paper, we delve into the various risks that could lead to asset stranding and provide actionable insights for fund managers on how to mitigate these threats effectively.

Learn more from Sam Carson of CBRE, a member of AREF's ESG & Impact Investing Committee, as he discusses the key themes of this paper:

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AREF would like to thank the ESG & II Committee for their invaluable contribution to this publication and in particular:

Sam Carson, CBRE – lead author

Alex Notay

Jessica Pilz, Fiera Real Estate

Ann Xu, CBRE Investment Management

Author

Rachel Portlock

Rachel Portlock

Head of Research, AREF

Rachel is responsible for working with a number of AREF committees, including the Research, Corporate Governance and ESG & Impact Investing Committees.

Previous to joining, Rachel worked as an independent investment management professional in real estate and prior to this she spent 11 years at Aviva Investors in the Real Estate Team as a Strategist and six years at Henderson Global Investors. 

Rachel has taken on a number of projects for AREF over the last few years, including the End of Fund Life Project, the Fund Structures Report, the History of AREF and also worked on the Open Ended Fund Pricing Project, in conjunction with INREV.