In commercial real estate (CRE), uncertainty is the new baseline. Billion-dollar natural disasters are becoming more common, with the U.S. experiencing 27 major events in 2024 causing approximately $182.7 billion in damage. CRE insurance premiums continue to climb, with a 5.7% year-over-year increase in commercial property premiums through mid-2025. On top of these pressures, capital constraints and market volatility are also reshaping asset strategies. 58% of CRE firms report difficulty raising capital, and 44% have already changed investment plans due to volatility.

The current market means organizations need to be able to anticipate, absorb, and adapt. For many, the first step is redefining “asset” for CRE.

Key takeaways

  • Resilience requires redefining “asset” beyond buildings. Critical equipment, machinery, and digital infrastructure must all be considered when assessing vulnerability and planning capital investments.
  • Static forecasting models can’t handle today’s volatility. Leading organizations are shifting to dynamic scenario planning, stress-testing capital decisions quarterly against best-, base-, and worst-case conditions including supply chain disruptions, cyber threats, and regulatory changes
  • True resilience is built on everyday preparedness, not just crisis response. While extreme events capture attention, the foundation of resilience lies in well-maintained systems, documented procedures, trained staff, and cross-functional collaboration

Building that adaptability requires investing in quality data infrastructure, fostering cross-functional collaboration, and implementing technology that delivers real-time insights across the entire portfolio.

Why traditional models fall short, and the power of scenario planning

Static capital forecasting models were built for predictable depreciation cycles, not today’s volatility. They assume stable insurance costs and gradual technological evolution, assumptions that don’t account for extreme weather events, rapid regulatory shifts, and cascading risks.

While traditional models often focused on properties with economic value, like office buildings, retail centers, industrial warehouses, or hotels, the definition of asset must now expand to include large capital equipment and critical machinery within manufacturing plants or even specialized industrial or construction equipment.

When considering what to include in resilience discussions, organizations should think in terms of “what-ifs.” If a critical piece of equipment stops working, does it affect your ability to make money? Those are the assets that demand attention.

Many leading organizations now treat forecasts as living documents, refreshing them quarterly instead of annually.

They’re asking themselves:

  • What if a major supply chain disruption delays critical equipment replacement by six months?
  • What if a new cybersecurity threat targets smart building infrastructure?
  • What if local zoning changes restrict future development or expansion?

It’s this dynamic approach that empowers them to stress-test decisions before committing funds. It also enables teams to respond agilely to unforeseen challenges and strategically anticipate potential breakdowns rather than merely reacting to them.

Dispelling resilience myths

Strategic resilience involves investing in redundancy where it matters, hardening critical systems, and building optionality into the portfolio. It’s not merely about emergency preparedness. It’s an exercise in strategic foresight tied directly to asset value and insurability, encompassing flexible sourcing, adaptive design, and robust governance structures.

A common misconception is that resilience is solely about extreme events. True resilience is rooted in everyday preparedness, including well-maintained systems, documented procedures, trained staff, and robust supply chain redundancy. While organizations might pour money into flood barriers, neglecting preventive maintenance is a more likely source of costly disruptions.

Another myth is that resilience is inherently expensive. Often, it means reallocating existing capital more strategically rather than finding new budgets. Finally, many view resilience planning as a project with an end date, but in reality it’s a continuous process of monitoring, adapting, and improving.

Beyond physical assets, resilience also protects leverage. When organizations fail to plan, they create openings for others to exploit. In moments of crisis, vendors and contractors can escalate costs or impose unfavorable terms. Resilience closes those gaps by anticipating vulnerabilities before they become opportunities for someone else.

The digital dimension of resilience: Safeguarding IT infrastructure

Resilience isn’t limited to physical assets. Instead, it extends to your digital infrastructure. Modern commercial real estate operations rely heavily on complex, interconnected IT systems, from smart building technologies and IWMS platforms to sophisticated data analytics tools. Outages in foundational digital services can have far-reaching and intrusive impacts, underscoring the operational risks inherent in these tech environments.

Securing IT systems is no longer a smaller peripheral concern. It’s now a core component of overall asset management and resilience strategy. Just as organizations protect physical assets from climate shocks, they must proactively safeguard their digital assets from cyber threats. It’s a new reality that necessitates close collaboration between workplace and facility leaders and their IT teams, ensuring they partner with reputable and reliable technology providers.

Failing to secure these systems creates significant vulnerabilities that can be exploited, leading to operational downtime, data breaches, and reputational damage. At a time when many organizations grapple with a patchwork of standalone technology solutions, moving to a unified platform that integrates robust cybersecurity measures and vetted partners is critical for maintaining operational continuity and protecting asset value.

How to invest in projects that build resilience for building and asset operations

Resilience means moving from reactive fixes to proactive planning. Organizations should invest in key strategies to build adaptability and protect asset value through:

  • Scenario modeling and stress testing: Comparing best-, base-, and worst-case outcomes for rent growth, cap rates, and interest rates is now standard practice. These models help organizations understand how different economic and environmental conditions impact portfolio performance. Scenario projections improve investment decisions by revealing hidden vulnerabilities before they become costly surprises. Best-in-class teams run monthly scenario analyses to stress-test plans before committing resources
  • Data-driven capital planning: Organizations are leveraging real-time operational data and predictive analytics to optimize capital allocation. Enterprise-level facility and maintenance management systems integrate asset condition data, maintenance histories, and performance metrics to support scenario analysis and prioritize investments. It’s critical to invest in data infrastructure early. You can’t model scenarios without comprehensive asset data in one system. Centralized visibility allows executives to see portfolio-wide risk exposure and capital needs in a unified view
  • Technology integration for visibility and speed: CRE tech stacks increasingly integrate analytics, automation, and sustainability tracking to support proactive planning. Technology shifts the conversation from “what broke?” to “what will break and what’s it worth to prevent it?” IWMS and asset management platforms can help you aggregate condition data, maintenance histories, and cost trends to forecast failure probabilities. AI-powered analytics identify patterns humans can miss, such as correlations between deferred preventive maintenance and insurance claims
  • Cross-functional risk committees: Breaking down silos between real estate, finance, efficiency, compliance, and operations ensures you can address interconnected risks holistically. The committees align capital planning with efficiency goals, insurance requirements, and operational priorities, creating a unified resilience strategy

It’s important to understand that underpinning these proactive strategies is a fundamental organizational shift toward fostering cross-functional collaboration and breaking down the data silos often created by disparate single-point solutions.

Adaptability as a strategic advantage

When uncertainty is the baseline, the organizations thriving are not those with perfect forecasts. Instead, they’re the ones with adaptive systems, including quality data, flexible planning processes, cross-functional collaboration, and technology that surfaces insights fast. Building adaptability requires a commitment to proactive strategies. Today’s competitive advantage isn’t being able to predict tomorrow. Instead, it’s investing in the capability to pivot when the future catches everyone else off guard.

Learn how other CRE leaders are turning uncertainty into competitive advantage on the Workplace Innovator podcast.

Frequently asked questions

  • How is "asset" being redefined in the context of CRE resilience?

    The traditional definition focused primarily on properties with economic value — office buildings, retail centers, warehouses, and hotels. The expanded definition now includes large capital equipment, critical machinery within manufacturing plants, specialized industrial and construction equipment, and digital infrastructure. The guiding principle is simple: if a piece of equipment or system stops working and affects the organization’s ability to generate revenue, it’s an asset that demands resilience planning.

  • What's the difference between scenario planning and traditional capital forecasting?

    Traditional capital forecasting assumes stable conditions and predictable depreciation cycles, producing static annual budgets. Scenario planning treats forecasts as living documents, refreshing them quarterly and stress-testing decisions against multiple future conditions. Organizations model “what-if” scenarios — such as supply chain delays, cybersecurity threats, or regulatory changes — to understand how different conditions impact portfolio performance before committing resources. This dynamic approach reveals hidden vulnerabilities and enables agile responses. 

  • Isn't building resilience prohibitively expensive?

    This is one of the most common myths about resilience. Resilience often means reallocating existing capital more strategically rather than finding entirely new budgets. Organizations frequently overspend on reactive fixes while underfunding preventive maintenance and redundancy where it matters most. The key is identifying which systems are truly critical and investing in their reliability, rather than treating all assets equally. Additionally, the cost of not investing in resilience — operational downtime, emergency repairs at premium prices, insurance claims, reputational damage — often far exceeds the cost of proactive planning.

  • Why is digital infrastructure now considered part of asset resilience?

    Modern commercial real estate operations depend on interconnected IT systems, from smart building technologies and IWMS platforms to data analytics tools. Outages in these digital services can cascade into operational disruptions just as damaging as physical asset failures. Cybersecurity threats, system vulnerabilities, and technology failures create exploitable openings that can lead to downtime, data breaches, and financial losses. Securing digital infrastructure requires the same strategic attention as protecting physical assets from climate risks — it’s a core component of overall resilience strategy, not a peripheral IT concern. 

  • How can organizations get started with resilience planning if they're currently operating reactively?

    Start by establishing baseline visibility into asset conditions and performance across the portfolio. Invest in a unified data platform that integrates maintenance histories, asset conditions, and operational metrics — scenario modeling is impossible without comprehensive data. Next, form a cross-functional risk committee that brings together real estate, finance, operations, IT, and compliance teams to identify interconnected vulnerabilities. Begin running simple scenario analyses monthly, starting with one or two critical “what-if” questions relevant to the business. Most importantly, shift the organizational mindset from “what broke?” to “what might break, and what’s it worth to prevent?” This cultural change, combined with better data and collaborative structures, creates the foundation for true resilience. 

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As Vice President of Content and Customer Marketing at Eptura, Erin Sevitz oversees teams responsible for providing worktech insights and engaging 25 million Eptura users worldwide. With over 10 years in thought leadership on workplace management and the built environment, Erin brings deep industry knowledge to her role. Previously, she led communications for the International Facility Management Association, a global nonprofit dedicated to professional development for workplace strategists and building managers, and served as editor in chief for IFMA’s FMJ magazine.