Moody’s Analytics Teams Up with MIT’s Center for Real Estate on Climate and Real Estate Agenda
NEWS | For Immediate Release
New York, April 20, 2023 – Moody’s Analytics announced today the strategic collaboration between the commercial real estate business line and Massachusetts Institute of Technology’s Center for Real Estate (MIT/CRE). Through the quarterly sharing of data, this collaboration seeks to explore relationships between climate events/crises and commercial real estate (CRE) to provide valuable insights for investors, lenders, municipalities, and other industry insiders focused on the built environment’s exposure to extreme weather threats as a result of climate change. From wildfires and hurricanes to flooding and droughts, property owners, occupiers, and insurers are concerned about the risk to their assets and how to adequately prepare for such dangers.
MIT/CRE promotes and supports cutting-edge academic research, engaging the CRE industry through white papers, an annual World Real Estate Forum, and webinars open to consortium members and other key players in the industry. Researchers with MIT/CRE will leverage Moody’s Analytics’ proprietary climate and CRE financial performance data to: identify the impact physical climate risk exposure have on CRE property values and performance, underwrite climate, insurance, and transition risk, as well as transition planning for net zero carbon emission real estate portfolios.
“The real estate industry is now at the critical moment to address the climate crisis. Both MIT Center for Real Estate and Moody’s Analytics have the responsibility and the opportunity to champion multiple pathways toward greater sustainability in the real estate industry. That is why we are coming together to work on this important agenda.” said Siqi Zheng, Faculty Director and STL Champion Professor of Urban and Real Estate Sustainability, MIT/CRE.
The collaboration is set to begin in Q2 2023 and run for two years as the first phase. Drawing from the data supplied by Moody’s Analytics CRE and climate risk products, some of the researched topics will include the extent CRE markets price in the risk from extreme weather and climate change, what kind of physical or operational characteristics will make buildings more resilient against these risks, as well as designing behavioral interventions to facilitate adoption of sustainable technologies in the built environment.
“We are excited for the opportunity to provide our foremost commercial real estate data to such a world-renowned institution like MIT and the innovative group of experts at the MIT Center for Real Estate,” said Kevin Fagan, Head of CRE Economic Analysis, Moody’s Analytics. “In the spirit of MIT’s motto ‘Mind and Hand’, the MIT Center for Real Estate has a long history of providing applicable solutions for the real estate industry, including past joint ventures with Moody’s. Our team at Moody’s Analytics is proud to support such an important initiative to fold in climate considerations into real estate investing, and we will do all we can to propel their cause further.”
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