March Momentum: CapEx Deep Dive, Stanford's Renewables Verdict & Event Calendar
Welcome to The Asset Lab, where we blend real estate insights and technology to help asset managers and sustainability leaders tackle the biggest challenges in real estate. From navigating the complexities of ESG management to unlocking the financial potential of CapEx investments, we’re here to serve actionable advice that drives results.
Brought to you by leading asset managers and experts from Alasco -? the financial and sustainability management solution that helps you protect exit liquidity, increase assets under management, and deliver value in weeks - not months.
CapEx in Focus: Essential Insights for Asset Managers & Finance Professionals
In February 2025, together with PropTech Connect we hosted another productive roundtable bringing together 10 sustainability leaders from across Europe’s real estate sector.
Representatives from BNP Paribas Real Estate , Canary Wharf Group , Delancey , DTZ Investors REIM , L&G – Asset Management , OPREIM , PIMCO and Revantage, A Blackstone Portfolio Company discussed various CapEx strategies balancing cost control, asset value, and environmental compliance. Stay tuned for the full report with our key insights by following Alasco and subscribing to The Asset Lab!
If you can't wait that long - you're in luck. Together with AccorInvest , HB Reavis and PGIM Real Estate we uncovered how well-aligned CapEx strategies can future-proof asset value while staying sustainable and economically viable.?
Stanford Study: Renewables Beat Carbon Capture on Cost and Efficiency
A new study from 美国斯坦福大学 makes a strong case for prioritising renewable energy over carbon capture. Researchers from the Department of Civil and Environmental Engineering analysed energy systems in 149 countries and found that switching to wind, solar, geothermal, and hydropower is not only cheaper and more efficient but also significantly better for public health.
Key takeaways:
?? Renewables are the smarter investment: Clean energy sources are more cost-effective and reliable than carbon capture technology.
?? Carbon capture doesn’t fix the root issue: While it removes CO? from the air, it doesn’t make fossil fuel combustion any more efficient.
?? A full shift to renewables brings massive benefits: Energy consumption could drop by 54%, annual costs by 60%, and air pollution-related illnesses and deaths could be drastically reduced.
What this means for real estate
The transition to renewable energy will have a huge impact on the real estate sector. As governments and investors push for net-zero buildings, property owners will need to prioritise energy-efficient upgrades like solar panels, geothermal heating, and smart grid technology. Buildings that rely on fossil fuels may face declining value, higher operational costs, and stricter regulations, while sustainable properties will attract more tenants and investment.
Bottom line
The research is clear: investing in renewables isn’t just the best choice for energy - it’s also the smartest move for real estate. Property owners who embrace clean energy will future-proof their assets, reduce costs, and stay ahead of evolving sustainability regulations.
The Three ‘REs’: Should You REtrofit, REfurbish, or REpurpose?
The world of real estate is changing fast, and property owners have some big decisions to make. If a building is outdated or underperforming, what’s the best way to bring it back to life? Should you give it a simple upgrade (retrofit), a more thorough refresh (refurbish), or completely change its use (repurpose)? Knight Frank ’s UK Cities DNA research by Stephen Springham breaks it down, so let’s dive in.
Breaking down the ‘Three REs’
Not all property upgrades are created equal. Here’s what each option involves:
Why make a change?
Buildings that don’t keep up with the times can struggle. Rental values drop, vacancy rates go up, and sustainability regulations get tougher. Research from Knight Frank shows that offices upgraded from an EPC (Energy Performance Certificate) rating of C or lower to a B or higher see rental gaps shrink by 18 percentage points compared to prime properties. On the flip side, doing nothing can mean a 27% drop in rental value relative to prime spaces.
On top of that, sustainability matters more than ever. Making a building greener doesn’t just help the planet - it can also lower risks, attract tenants, and even boost resale value. Features like outdoor spaces, gyms, and electric vehicle charging stations can make a huge difference in rental appeal.
Cost vs. benefit
Of course, these upgrades come with a price tag. For example, upgrading an EPC D-rated office in London to EPC B could cost around ￡113 per square foot, and adding premium amenities could push that to ￡268 per square foot.
The key is to balance these costs with potential long-term benefits. Higher rent, lower energy bills, and meeting future regulations could all make these investments worthwhile. Understanding what tenants want and where the market is heading will help make the right call.
What’s the best option?
There’s no single right answer - it all depends on the building, location, and goals. But one thing is clear: standing still isn’t an option. Whether it’s a light-touch retrofit, a full refurbishment, or a major repurposing, acting now is the best way to stay ahead.
March Webinars: Register Now!
Gain some more insights into CapEx and sustainability reporting:
March Events: Let's Meet Up!
Meet our colleagues in Cannes, Berlin and Hamburg this month: