Concerns over operational disruption and uncertainty around investment returns are the biggest barriers to accelerating energy efficiency improvements across European commercial real estate portfolios, according to new research from re.
The study, involving 200 institutional asset managers across six European countries with combined assets under management of €296 billion, found that 79% identified reducing operational disruption as a key factor in accelerating improvements to poorly performing buildings.
Faster certainty over investment payback was the second most important consideration, cited by 65% of respondents, followed by clearer regulatory signals (55%) and better performance verification (40%).
The findings suggest that although institutional investors recognise the importance of improving building energy performance, concerns about implementation costs, disruption to occupiers and financial returns continue to influence investment decisions.
The research also identified a gap between the availability of building performance data and confidence in using it to guide investment.
While 82% of respondents said their portfolio data was good at identifying opportunities for improvement, only 47% were highly confident using that information to make capital allocation decisions.
Building management system (BMS) coverage also emerged as a potential obstacle. Almost two-thirds (62%) of respondents reported that only 20–40% of their assets had an up-to-date BMS, potentially limiting their ability to monitor performance, identify inefficiencies and optimise energy consumption.
Katie Whipp, Chief Business Officer at re, said: “Energy efficiency has moved from a sustainability objective to a core driver of asset performance and resilience.”
She added that investors were increasingly prioritising solutions capable of delivering measurable results without significant upfront expenditure or interruption to building operations.
For energy managers, the findings highlight the importance of demonstrating clear financial returns alongside carbon reductions, while ensuring proposed improvements can be implemented with minimal disruption.
They also underline the potential value of better building performance data, particularly when combined with technologies that can identify targeted efficiency improvements.
Re, which uses BMS data and digital twin technology to optimise building performance, reported that properties using its platform have achieved average annual energy savings of 37%, with implementation typically taking four to six weeks.
The research was conducted in February 2026 among asset managers in the UK, Germany, France, the Netherlands, Spain and Italy.
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