The Real Estate Owner's Dilemma

Part 1 of a 3-part series on: 

Rising Risks, Tougher Regulations, and a Data Problem

Capital project owners and sustainability leaders face a dilemma heading into 2025: the expectations placed on them are increasing faster than their capacity to respond.

On the one hand, the pressure is mounting:

• ESG and decarbonization strategies are no longer optional. In many regions, they’re required by law.

• Financial risks—from cost overruns to reputational damage—are now business-critical issues.

• Regulatory complexity is surging across North America, Europe, and APAC, with new rules like CSRD, EPBD, and Local Law 97 raising the bar for compliance and disclosure.

At the same time, large-scale capital projects are becoming more expensive, more complex, and more exposed to volatility in supply chains, labor, and financing. In this context, getting the right data—and acting on it—is no longer a nice-to-have. It’s survival.

A Hidden Vulnerability: The Data Maturity Gap

Here’s the challenge: most organizations are not yet equipped to manage this complexity.

Recent research shows:

• 46% of project owners still don’t have a dedicated team for managing project data.

• Only ~20% have software in place for ESG reporting or compliance validation.

• Use of lifecycle carbon assessments (LCA), BIM, and digital twins is inconsistent and often siloed.

In short, while the market talks about AI, digital twins, and smart buildings, many firms are still struggling with the basics: gathering accurate data, ensuring traceability, and making decisions with confidence.

This creates a dangerous gap between the urgency of external expectations and the reality of internal capabilities.

Why It Matters Now

This gap isn’t just a technical issue—it’s a strategic risk. Without the right systems in place:

• ESG goals become vague promises instead of measurable progress.

• Decarbonization plans remain stalled at the pilot phase.

• Capital is harder to access, and reputational risk grows.

• Decision-making slows down just when it needs to speed up.

What we’re seeing is a new kind of vulnerability: one where a lack of actionable data limits your ability to deliver projects on time, within budget, and in line with ESG expectations.

Where Do We Go from Here?

The good news? Many project owners know they need to change. Over 60% say they’re actively investing in digital tools to modernize project delivery and ESG tracking.

But awareness is just the first step.

In our next post, we’ll dive into what tools are actually being adopted—and what separates the technology that’s sticking from the tools that stay in the pilot stage.

Next up: From Hype to Impact — The Digital Tools Project Owners Are Really Investing In We’ll look at the rise of AI, ESG software, and construction management platforms—and what it means for real estate leaders who want to futureproof their portfolios.

Click here for Part 2: