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Survey Shows Companies Prepared to Pay a Premium for Green Real Estate

CoreNet Global
2007-04-27 09:46 1030

Survey Conducted by Jones Lang LaSalle at the 2007 CoreNet Global Asia Summit Unveils Shift in Corporate Attitudes Towards Sustainability

HONG KONG, April 27 /Xinhua-PRNewswire/ -- A sustainability survey conducted by Jones Lang LaSalle in collaboration with CoreNet Global has revealed that 64% of respondents from the Asia-Pacific are prepared to pay a premium for greener real estate.

Although actual adoption rates of sustainable real estate solutions across the region is low, the study conducted by Jones Lang LaSalle at an international meeting of over 300 corporate realty professionals at the CoreNet Global Asia Summit, indicates that sustainability as an issue for the commercial property sector is clearly on the rise.

The report showed that of those surveyed, 93% of respondents expressed a notable increase in awareness regarding sustainable buildings over the last three years, with 62% expressing that such growth in associated environmental, economic and social awareness had been significant.

In addition, the findings reflect that there is strong support amongst organisations throughout the region for increased sustainable real estate activity as the business value of demonstrating corporate environmental responsibility is being recognized.

"Occupiers are indicating that they are prepared to pay more for green real estate and that it is important for their organizations to occupy sustainable buildings. However, although there is a 'green real estate premium', providers of corporate accommodation also need to realize that there is likely to be a discount applied to non-sustainable real estate in the future. Occupiers will pay more for sustainable real estate solutions and where possible avoid non-sustainable real estate solutions," said Mr. Justin Kean, Associate Director, Occupier Research at Jones Lang LaSalle.

The rising importance of sustainability was reinforced by the survey. Nearly half of the survey's respondents stated that sustainability was a critical issue for their organisations, with 42% indicating that environmental and social measures are already being embraced as part of their property considerations.

"However, given that a further 34% of respondents expressed sustainability will become a major issue for their enterprises within three years implies that emphasis on greener buildings and work practices is escalating," commented Mr. Chris Wallbank, National Sustainability Director for Jones Lang LaSalle.

"In particular, our study has revealed a growing commitment amongst real estate developers and end-user occupiers towards supporting sustainable real estate principles. Consequently, this is a trend we expect will continue in the future given the rising levels of awareness and operational necessities associated with sustainability," Mr. Wallbank continued.

Despite growing support for greener realty practices, Ms. Linda DeMars, Vice President for Programme Development at CoreNet Global points out that, in reality, many companies in Asia experience difficulties in sourcing viable sustainability options.

When asked 'how well are landlords and service providers servicing and promoting sustainability requirements within the real estate that you occupy and operate,' only 18% of respondents considered current provisions of sustainable real estate good or adequate.

"In fact, the overwhelming majority consider availability of sustainable property options and resources to be good in some markets but very poor in others," Ms. DeMars noted. "Clearly this presents an opportunity for developers to introduce and retrofit green real estate across Asia."

There was also a strong indication from delegates attending the Summit that supply of sustainable real estate solutions are generally more widely available in mature markets and greener work place practices from the United Kingdom, United States and Australia could be exported to Asia.

"As such, we consider that it would be immediately possible for real estate professionals in the region to start addressing the issues of Corporate Social Responsibility through the introduction of some initial green initiatives," Ms. DeMars concluded. "This could be achieved via the adoption of smaller and more instrumental sustainability practices that over time could be developed into a larger-scale Corporate Social Responsibility programme."

Editor's Notes

For a full copy of the survey results, please contact Ms. Janet Middlemiss at (852) 2857 3832 or at jm@rfpmagazine.com .

For more information, please contact:

Jones Lang LaSalle

Supatriana Supaat

Tel: +65-6539-9014

Fax: +65-6438-3361

Email: supatriana.supaat@ap.jll.com

CoreNet Global

Jennifer Gao

Tel: +86-21-6122-1251

Fax: +86-21-6122-1481

Email: jgao@corenetglobal.org

RFP

Janet Middlemiss

Tel: +852-2857-3832 / +852-9195-7829

Fax: +852-2840-1284

Email: jm@rfpmagazine.com

Source: CoreNet Global
Keywords: Real Estate
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