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Occupiers to drive sustainability in Asia real estate, says JLL

28th March 2024

The emergence of environmentally conscious tenants prioritising the decarbonisation of their portfolios will change the real estate landscape in Asia, a new report claims.

A report from JLL, Asia’s decade of action: accelerating the transition to sustainable workplaces, predicts that the demands of corporate occupiers, each seeking to meet challenging net zero targets, will shape real estate strategies in the region. 

The report argues that a number of factors will shift demand for real estate. It says:

  • Competition will intensify for sustainable office buildings. JLL predicts that supply of low carbon buildings in major Asian office locations will be 30 million sq ft below occupier demand over the next decade. 
  • Building performance data is set to overtake green certification. While more occupiers will be targeting 100% green-certified portfolios, in time they will focus more on building performance and sustainability data.
  • There will be heavy investment in sustainability tech. Decarbonisation aspirations are fuelling demand for effective energy and emissions control, intelligent energy systems and sustainability reporting mechanisms.
  • Rapid expansion of renewable energy will catalyse low carbon buildings. Rising occupier demand for renewable energy procurement has emerged as a key driver for renewable energy expansion in Asia. 
  • Sustainable fit-out will become a necessity. Fit-outs are responsible for one-third of emissions over the life of a building, so circularity principles and  sustainable materials will become crucial.
  •  Evolving ESG regulations will be an “unavoidable minefield”. The emergence of new regulations and ESG taxonomies in various regions will force companies to adapt quickly and effectively.

The full report is available here.

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