PREMIUMS are piling on for greener or climate-adapted buildings, as private credit funds swoop in to refinance floundering commercial real estate (CRE).

Industry players said the private credit industry is focused on risks from climate change, such as flooding and rising temperatures, and seeking out best-in-class buildings that are energy efficient or have lower emissions.

The CRE market has been in a bad place for some months, particularly in the United States and Europe, as offices emptied out by the pandemic refused to fill up again.