JLL Research found a mismatch between supply and demand for green buildings up until 2030 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - Corporate net zero carbon goals are driving demand for green office buildings in Singapore, according to JLL. Research done by the consultancy published on March 26 shows that 83% of occupiers surveyed in Singapore are targeting 100% green-certified portfolios by 2030, up from 0% currently.
This comes in tandem with growing demand in the wider region. Demand for sustainable buildings in Asia Pacific has increased, with 87% of occupiers surveyed by JLL targeting 100% green-certified portfolios by 2030. This is up from the current 4% certified portfolios.
The demand is particularly strong in India, Malaysia, and Thailand, with over 95% of occupiers targeting 100% green-certified portfolios.
However, JLL found a mismatch between supply and demand, which will drive strong competition among occupiers seeking low-carbon office spaces in the years leading up to 2030. For every five sq ft of demand, only two sq ft of low-carbon space will be in development until 2028.
JLL’s head of ESG research in Asia Pacific, Kamya Miglani, expects occupiers to raise the benchmark and demand building performance and sustainability data over green building certifications to ensure that assets are aligned with their net zero carbon goals.
This includes adopting more sustainability strategies such as energy audits, sustainable fit-outs and green leases to achieve sustainable workplaces.
Strong competition for sustainable assets across the Asia Pacific is also expected, says Elke Kornalijnslijper, JLL’s head of sustainability consulting in Asia Pacific. She adds: “Occupiers need to navigate this reality through robust planning across their real estate value chain, resulting in stronger collaborations with stakeholders like landlords, investors, technology partners and city administrations.”