Evaluating energy transition risk to European offices

Anticipation of legislation requiring minimum standards of energy efficiency is already impacting CRE values as investors price in transition risk and this pressure is likely to ramp up in the coming years as compliance deadlines harden. This note provides a high-level assessment of the risk to values across Europe and finds that CEE and several smaller euro-zone markets look most vulnerable, but that the risk should be relatively manageable on the whole.