70% of Asia-Pacific corporations willing to pay more rent for green buildings: JLL

SEVEN in 10 corporations in Asia-Pacific are willing to pay higher rents to lease sustainability-certified buildings in the future, according to JLL's new report released on Monday.

The report also noted that the majority of corporate occupiers leasing space in a green building at present are paying 7-10 per cent more rent.

Although corporates are willing to pay the premium, the supply of green buildings is currently not enough to meet the ambitious net-zero targets set by occupiers, the report noted.

This imbalance will force landlords to consider refurbishing and retrofitting their buildings to meet existing and future regulatory standards, as well as the demands of their tenants.

Investors, meanwhile, will prioritise future investments in green-certified assets to ensure adequate supply.

JLL Asia-Pacific chief executive Anthony Couse observed that for companies operating in the region, any meaningful reduction in carbon footprint is tied directly to real estate.

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"Corporate occupiers will increasingly demand real estate solutions that complement their sustainability agenda," he added.

JLL Asia-Pacific chief research officer Roddy Allan said companies are willing to pay a premium to meet new demands in the region. This comes as society shifts towards an emphasis on green and sustainable spaces in a bid to address the concerns on climate risk.

JLL's "Sustainable Real Estate: From ambitions to actions" report was based on an online study of 478 occupiers and 76 investors from multiple countries across the region, with a "strong emphasis" on Australia, China, India, Japan and Singapore.

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