5 Ways to Build Resilience Into Your Portfolio

Looking out at 2026, commercial real estate faces a complex mix of geopolitical challenges, regulatory shifts, and macroeconomic uncertainties. Globally, ongoing conflicts and trade dynamics are disrupting supply chains and elevating costs, while regulatory environments continue to evolve.

These factors may lead to greater unpredictability in asset prices, potentially higher risk premiums, and increased caution among investors, owners, operators, and developers. Given the complexity of these risks, organizations across commercial real estate must adopt a strategic, proactive approach to risk management. The following five steps can help your organization do so:

1. Conduct a comprehensive risk assessment

Your organization should regularly evaluate geopolitical developments in key markets. This includes monitoring political stability, trade policies, sanctions and regional conflicts. Engaging with geopolitical risk advisors can provide early warning signals of potential disruptions.

For portfolios or holdings with international exposure, consider diversifying across regions to reduce exposure to any single geopolitical event. Establishing contingency plans—such as alternative supply chains or flexible leasing arrangements—can also help mitigate the impact of instability.

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2. Prioritize ongoing regulatory monitoring

Staying ahead of regulatory changes is vital. Your organization should maintain ongoing communication with policymakers, industry associations and legal experts to anticipate legislative shifts. Participating in advocacy efforts can also help influence policy development and maintain that your interests are considered.

Implementing a dedicated compliance team to monitor regulatory updates and assess their implications can prevent costly surprises. Additionally, integrating regulatory risk assessments into strategic planning can help you factor potential changes into investment and operational decisions.

3. Build flexibility into investment, operations

Flexibility is key to resilience. Your organization should design investment portfolios and development plans that can adapt to regulatory constraints or geopolitical shifts. This may include diversifying property types and geographic locations. 

In regions where regulatory uncertainty is high, you may also consider phased development or leasing strategies that allow for adjustments without significant financial penalties. This approach can reduce exposure to sudden policy shifts and provides room to pivot as needed.

4. Maintain transparency. Actively engage stakeholders

Transparent communication with investors, tenants, regulators and community stakeholders can help build trust and facilitate smoother navigation through regulatory changes. Clear disclosures about potential geopolitical and regulatory risks demonstrate strong governance and can enhance reputation.

Engaging with local communities and regulators early in development or operational processes can also help identify potential issues before they escalate, fostering collaborative solutions. For example, climate change and environmental regulations are increasingly intertwined with geopolitical considerations. Incorporating resilience measures—such as green building standards, energy efficiency, and climate risk assessments—can mitigate risks, demonstrate a commitment to community priorities, and appeal to socially conscious investors, providing a competitive edge in a crowded market.

5. Invest in risk management infrastructure, expertise

To effectively navigate geopolitical and regulatory risks, your organization may consider investing in robust risk management infrastructure and specialized expertise. This may include leveraging advanced data analytics, scenario planning and crisis management capabilities that are customized to your portfolio, geographic locations, and specific risk profile. 

Collaborating with experienced risk advisors can enhance your organization’s ability to respond swiftly and effectively to emerging threats. Additionally, ongoing training for leadership and operational teams on geopolitical and regulatory developments can strengthen organizational agility and help maintain compliance across functions.

Complex challenges like those facing commercial real estate come with opportunities to strengthen internal processes and bake resilience measures into organizational structure. Reframing this complexity as opportunity can help build a stronger risk culture across your organization.

Duncan Ellis is U.S. & Canada real estate and hospitality industry leader for Marsh.