Resilience, in this context, refers to the capacity of cities and buildings to withstand and adapt to a range of unforeseen shocks while preserving their functionality, safety and cultural identity. This framework outlines key strategies for enhancing resilience by future-proofing infrastructure, promoting adaptive reuse of real estate, and using digital tools for risk management. By addressing these challenges, owners can protect the value and functionality of their assets, and cities can protect their residents while ensuring long-term sustainability. Key issues and challenges: Rapidly evolving demand patterns: Traditional demand patterns have been upended, making long- term planning and investment more challenging. Physical climate risk: The increasing frequency and intensity of natural disasters and chronic climate impacts have resulted in subsequent rising premiums and reduced access to insurance markets. Broadening and deepening risk spectrum: The potential for a wide range of shocks, including public health, fiscal and economic, has only increased. The variety and severity of these shocks have made resilience at both the asset and organizational levels essential. Global fragmentation: An increasingly fragmented geopolitical landscape that has wide-ranging impacts, from portfolio construction to supply chain disruption. Relatedly, investment decisions are becoming increasingly politicized. Pace of technological evolution: The proliferation of digital technologies, including AI, and the uncertainty around the scale and pace of their adoption can complicate both use decisions but also planning for their impact on business operations and demand. Strategic recommendations: Resilient capital stacks: Cyclical forces will inevitably drive shifts in market participants’ access to capital and the resilience of property- level capital stacks. Combined with systematic shocks to property performance from evolving patterns of space use and other determinants of cash flow, these shifts have the potential to upend property markets, asset values and the stability of borrowers and lenders. Ensuring a capital stack, including a balance of traditional and non-traditional debt and equity, that can withstand both transitory or sustained changes in property cash flow and market values is a critical feature of financial resilience for properties and portfolios. On the debt side, measures like higher reserve requirements, 3.3 Resilience Reimagining Real Estate: A Framework for the Future 26

Reimagining Real Estate 2024