Trump tariffs fuel uncertainty: ESG-proof real estate as a hedge against risks
President Trump’s announced tariff hikes have immediate consequences for the real estate sector. Higher import duties disrupt international supply chains and contribute to volatile energy prices. Combined with geopolitical tensions—particularly in the Middle East—this makes the economic outlook increasingly unpredictable. For real estate owners, this translates into direct risks to operations, valuations, and tenant demand.
When stock markets drop sharply, real estate often re-emerges as a safe haven. But to truly offer protection, buildings must provide more than just stable rental income and inflation hedging—they must also meet ESG standards.
At the same time, pressure is mounting to contribute to Paris Proof targets. Beyond this societal responsibility, the economic rationale for sustainability is becoming more and more evident. ESG-proof real estate is not only easier to finance, sell, and lease—it also offers stability in a world that is becoming harder to predict.
Unpredictable energy markets create uncertainty in service charges, increase tenant pressure, and raise the risk of value erosion. Inefficient buildings quickly lose their appeal when certainty and manageability become more important than short-term yield. Those who invest now in energy efficiency, healthy indoor environments, and reliable ESG data are building resilient portfolios—a safe haven in stormy economic weather.
Still, many players in the industry see ESG merely as a compliance issue or a tool for benchmarking between investors. But it is precisely those real estate parties who treat ESG as a strategic lever for risk mitigation and value preservation who will be better positioned for the future.
Crises tend to accelerate transitions. The oil crisis of the 1970s put energy conservation and alternative energy on the map. The 2008 financial crisis gave sustainable construction a boost, spurring the rise of certifications like BREEAM and LEED. The COVID-19 pandemic shifted focus to health and well-being, fueling broader adoption of WELL and Fitwel. Today’s geopolitical turmoil—from Ukraine to growing trade tensions with China—is now driving the need for energy independence, circularity, and local energy production. Trump’s new tariffs add to that pressure—not necessarily because energy will become more expensive, but because no one knows what’s coming next.
Reporting Isn’t Enough: Insight and Steering Are Essential
Reporting ESG indicators is only the starting point. Real impact begins with understanding how a building truly performs—on energy, emissions, health, circularity, and social value. As GRESB emphasized in its latest guidance, ESG only becomes meaningful when it is embedded into day-to-day asset and portfolio management.
That requires reliable data based on recognized standards such as BREEAM, WELL, or CRREM—as well as interpretation and action. Reporting without steering is like navigating without a compass. Those who use real-time insights to actively drive improvement increase both the resilience and long-term value of their assets.
Behavior Makes the Difference: Involve the Users
Even the best-performing building will fall short if used incorrectly. In uncertain times, communication with tenants is more important than ever. By giving them insight into energy use, encouraging open discussion about behavior, and setting shared goals, it becomes possible to achieve lasting improvements. Behavioral change is a vital part of ESG impact—and it requires collaboration.
The logic is clear: the more uncertainty there is, the more valuable real estate becomes when it provides control over performance. According to the International Energy Agency, well-executed renovations can reduce energy consumption by at least 30%. In a market where margins are tightening and tenants are becoming more selective, energy efficiency is not just a cost issue—it plays a crucial role in valuation, leasing, and exit strategies.
In a world where geopolitics and trade policy directly affect operating costs, efficient and resilient buildings are a form of independence. Healthy, high-performing properties are no longer just a moral choice—they are a strategic advantage, provided you know where you stand and where you want to go.
