The current economic climate has presented challenges for investors and occupiers looking to improve sustainability in their built environments. JLL’s latest report, “The Commercial Case for Sustainable Buildings,” emphasizes the importance of three key factors when making decisions around ESG.
Firstly, there is a growing demand for sustainable buildings globally, which is impacting office market dynamics. However, the current supply falls short with only 34% of future demand being met. Tenants are increasingly valuing environmental performance and green buildings when choosing office spaces, leading to historic rental rates in some markets.
Secondly, more regulations focused on sustainability in commercial real estate are expected to be implemented soon. This highlights a growing commitment towards sustainability within the industry.
Lastly, extreme weather events have resulted in mounting costs from physical climate risks. It is crucial for stakeholders to assess these risks and potential damages when considering investments into decarbonizing and resilience across real estate portfolios.
According to Guy Grainger , JLL’s Global Head of Sustainability Services and ESG: “Despite headwinds from today’s global economic environment,the business case for investing in decarbonization and resilience across real estate portfolios continues to strengthen.”
This article was originally published on Connect CRE .
