Companies in APAC willing to pay higher rent for Green buildings

Kuala Lumpur, 22 June 2021 – A majority of Asia Pacific (APAC) corporations (70 per cent) are willing to pay a rental premium to lease sustainability-certified buildings in the future. This commitment aligns with broader real estate sustainability developments across APAC where 40 per cent of corporate occupiers have already adopted net zero targets and another 40 per cent are planning to adopt targets by 2025.

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The regional real estate decarbonisation drive is also prompting 80 per cent of corporate occupiers to prioritise locations that help them reduce carbon emissions, while 65 per cent of investors will focus more on Green building investments.

Approximately 90 per cent 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, according to JLL’s survey with over 550 corporate real estate leaders in APAC. For corporate occupiers who currently lease space in a Green building, the majority are paying a rental premium of 7-10 per cent, providing a benchmark for future sustainable leasing trends.

Read: How Green Accreditation Can Benefit the Construction Business

“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,” said Anthony Couse, CEO-APAC, JLL.

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While firmer commitments from companies are necessary to accelerate the net-zero carbon ambitions, organisations have identified several barriers in achieving their sustainable real estate goals. Approximately 70 per cent of occupiers report a lack of incentives from governments and support from landlords. Additionally, three out of four companies surveyed identified insufficient technological infrastructure as a hurdle to reaching their environmental goals.– Construction+ Online