Demand for sustainable buildings and tightening regulations drive business case for investment

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The JLL study analyzes three key issues that owners and occupiers should consider in decision-making.

Chicago, November 28, 2023 /PRNewswire/ – The current economic climate is creating challenges for investors and investors in investing in real estate rehab and protecting their future assets. JLL New A business case for making buildings more sustainable The report outlines three key factors that should be prioritized by owners and occupiers in order to create a stronger and more sustainable built environment.

Increasing demand for sustainable buildings
In many international markets, increasing corporate demand for buildings with sustainability certifications will affect the dynamics of the office market. including 20 major office markets new york, Paris And in Singapore, only 34% of the future low-carbon workplace needs will be met in the next several years. In other words, for every 3 square meters of demand, there is only 1 square meter in the current pipeline.

The way occupiers think about sustainable buildings is also changing. Historically, green certifications have been the primary mark of sustainable buildings and tenants have been willing to pay the price. Market evidence from 2023 shows that healthy rents are still being achieved for certified buildings in various international office markets – but the industry is changing.

Tenants increasingly rely on environmental performance indicators such as energy efficiency and electrification on green credentials. JLL is seeing evidence of this in advanced European markets. London And ParisEven with a general slowdown in the sector, low-carbon headquarters are reaching historic rent highs this year.

“Despite the current headwinds from the global economic environment, the business case for investing in carbon and resilience building in real estate portfolios is getting stronger,” he says. Guy GrangerHead of Global Sustainability Services and ESG: “Acting now will reduce the business costs of recurring climate events and dramatically increase the business benefits of the provision of low net zero carbon buildings worldwide.”

More restrictive rules
Although market forces currently driving investors and investors are moving faster than regulations, new legislation is emerging at the global, national and city levels. Policies from 16 global cities covering carbon, energy, building circularity, biodiversity and resilience demonstrate broad commitment and action. For example, ‘Climate Progressive’ as new york, Paris And Amsterdam It is developing various policy guidelines covering new and existing commercial and real estate. new york He introduced several pioneering environmental laws Paris It is leading the way in considering the carbon involved. Singapore It has put in place a holistic approach to greening the buildings.

Installation costs from physical climate hazards
Damage caused by increasingly frequent and extreme weather events is a real estate concern. Part of building a strong business case involves being aware of potential business interruption and damage to buildings. One of the challenges in assessing climate risk is the wide range of approaches and lack of consensus on standardization. Some providers are thinking about value at risk in terms of insurance value, while others are looking at changes in property value or replacement value.

It’s on December 5, 2023as if 10 p.m. CT/ET 11:00/4 pm GMTJLL will host the webinar as part of COP28 To discuss the findings from the report with ULI’s external expert team; Hines and Standard Chartered. Click the link to register over here.

About JLL
For more than 200 years, JLL (NYSE: JLL), a global commercial real estate and investment management company, helps clients acquire, develop, own, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue 20.9 billion dollars And our more than 105,000 employees working in more than 80 countries around the world bring the power of a global platform combined with local expertise. Driven by our mission to shape the future of real estate for a better world, we help our clients, people and communities see a brighter future.SM. JLL is a brand and registered trademark of Jones Lang LaSalle Incorporated. For more information, visit jll.com.

Contact: Alison Heraty
Phone: +1 312 228 3128
Email: [email protected]

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