An essential task for residential property companies to maintain their long-term viability is to secure the future rentability/marketability of their buildings. In this context, the property and real estate industry is currently facing the challenges of a dynamically changing environment (megatrends such climate change, shift in social values, further development of political framework conditions). On top of that, they should and want to assume more responsibility for the environment and society to contribute to sustainable development. Both tasks are closely interlinked. The question that arises is which current and future requirements for location and building characteristics result from a changing environment and which instruments companies should use to control the further development of their building stocks?

Dealing with the requirements arising from megatrends, in particular the derived opportunities and risks, plays a decisive role in the management of institutional building stocks (portfolio). Instruments for portfolio analysis and portfolio management that link location and building characteristics with rental success provide one approach. These traditional instruments for managing the development of building stocks, however, have so far not - or only inadequately - taken sustainability aspects and changing user requirements into consideration.

The paper describes a concept that supports the advancement of portfolio analysis methods, which integrates, in addition to traditional aspects, those characteristics of a building that may influence the (risk) assessment of the building in the future and have not or only inadequately been considered in traditional analyses. In particular, the paper presents and discusses the interdependencies between the dimensions 'environment' / 'location' / 'building' on the one hand and 'location' / 'building' on the other hand. In addition, interdepencies within the individual dimensions are analyzed and modeled. Thus, the predictable consequences of climate change (climate risks) at the respective location lead to increased demands on technical quality of the buildings, in terms of resilience of the buildings' construction to the consequences of climate change as well as on the quality of summer thermal protection. At the same time, the increase in the relative importance of these characteristics is taken into account in the aggregate assessment of the dimension 'building characteristic'.

In Addition, indicators (KPI's) are identified that are directly related to sustainable development goals (SDGs). The paper describes a model for integrating sustainability aspects into portfolio & risk analysis of building stocks, visualized by a two-dimensional matrix which can capture the required level of complexity by introducing additional sub-dimensions into the analysis. The model intents to improve the transparency of the opportunity - risk profile of buildings, considering a changing environment and changing user requirements for location & building characteristics. By modelling the correlation between the impact of the respective megatrend and the underlying building assessment, the model can support portfolio managers of residential property and real estate companies in their work. In addition, the dynamic approach of the model enables to adapt to a changing market environment and a changing demand, which could result from changing stakeholder preferences. The results of a dynamic analysis can serve as an early warning indicator and build the basis for recommendations for action on the portfolio strategy.