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70% of firms in APAC willing to pay rental premium for green buildings

EdgeProp Singapore |

June 22, 2021 6:08 PM SGT

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SINGAPORE (EDGEPROP) - Some 70% of firms in Asia Pacific are willing to pay a rental premium to lease sustainability-certified buildings in the future, according to a survey of 550 corporate real estate players by JLL. (See also: The greening of Singapore’s real estate)

About 90% of companies in Asia Pacific agree that tackling emissions from real estate is essential in achieving a net zero carbon agenda — signalling a new era in regional real estate portfolio leasing and investment, it states.

This is in line with broader real estate sustainability developments across Asia Pacific where 40% of corporate occupiers have already adopted net zero targets and another 40% are planning to adopt targets by 2025.

JLL notes that the regional real estate decarbonisation drive is also prompting 80% of corporate occupiers to prioritise locations that help them reduce carbon emissions while 65% of investors will focus more on green building investments.

“For companies operating in Asia Pacific, any meaningful reduction in carbon footprint is tied directly to real estate. Corporate occupiers will increasingly demand real estate solutions that complement their sustainability agenda. This will lead investors to prioritise green investments, propelling the real estate industry transformation towards future-ready green buildings,” says Anthony Couse, chief executive officer, APAC, JLL.

Organisations have identified several barriers in achieving their sustainable real estate goals, which include a lack of incentives from governments and support from landlords, comprising 70% of respondents. Three out of four companies surveyed also highlighted insufficient technological infrastructure as a hurdle to reaching their environmental goals. (See also Guoco Midtown sustainable features)

“Across Asia Pacific, society is shifting towards an emphasis on green and sustainable spaces in a bid to address the concerns on climate risk, and companies are willing to pay a premium to meet new demands,” says Roddy Allan, chief research officer, JLL Asia Pacific.

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