However, there are significant challenges to address in the transition phase: What to do with worthless unsustainable empty buildings? Who takes the financial hit? Who takes the initiative in the market place? How will the new reality affect owners, users, investors, governments? etc. But the conclusion is clear: the real estate sector can only survive when it becomes sustainable.

 

What is interesting is that even today many market players still give the impression to be caught by surprise. You wonder how this is possible! The financial markets are basically closed, and governments are more stringent than ever. Those who neglected the new reality are facing huge hurdles, and will likely be among the losers. Those who anticipated this reality, the smart peers, have created a competitive advantage and will likely be among the winners.

 

So what do we learn from this? In any sector, sustainability should be put first. The lessons in real estate equally apply to your sector. Yes, there are other key decision factors, other dynamics, other challenges, and other hurdles. But no sector can afford to neglect the drive towards a more sustainable business. If you do, you are placing a risky bet on your future. So you decide: are you ready to embrace the new reality or do you continue living in the past?