LONDON: Demand for environmentally friendly buildings is set to increase strongly over the next two years as companies with emissions reduction commitments see their leases come up for renewal and seek a greener alternative, real estate company JLL says.
As more companies commit to reach net-zero emissions by 2050, most will be looking to cut those tied to their offices and factories, yet demand for low carbon buildings is set to outstrip supply.
“Time is of the essence for the real estate industry,” Guy Grainger, JLL’s global head of sustainability services and environmental, social and governance, said.
“We are in a new world where inaction over decarbonisation will see investments fall into economic obsolescence in the coming years.
“While for real estate tenants, this growing need to show progress against carbon commitments will lead to price friction and a race for low-carbon buildings.”
The number of companies committing to reach net-zero emissions across their business by 2050 has surged in recent years, with 7,600 companies worldwide signed up to the Science Based Targets Initiative.
For every three square metres of global demand, less than one square metre is being developed and only 30% of future demand for low-carbon workspace is projected to be met by 2030. — Reuters