A year ago, we talked about "stranded assets" i.e. those at the mercy of shifting working patterns, but particularly changing environmental standards. We now have new terminology: "zombie" assets, a term that as Peter Bill points out in his recent Property Week column, Americans have coined to described those offices that are: "half-empty, financially dead blocks, unviable to upgrade". According to Bill, these now comprise 40% of New York office stock. Unsurprisingly, the anticipated impact on valuations is stark. 

Yet, as we described a year ago, surely any hint of distress gives rise to potential opportunity, at least for those that can fund the capex to bring a building up-to green standards, whether regulatory, or dictated by investors and incoming occupiers. 

And of course, as the sector plots a way towards net zero, we simply cannot ignore existing stock. Quoting a panellist at a recent BPF webinar: “you have to go through various shades of brown to get to various shades of green”. This stock is precisely where "green" investment needs to find a home. Not everything can be bright new shiny energy efficient etc new builds.