Corporate carbon reduction commitments will have a significant impact on office leasing over the next few years.
Businesses that have pledged to reduce their organization’s impact on climate change must ensure their next lease allows them to show material progress on their goals, according to a report by JLL. This factor will have a significant impact on the office market over the next 12 to 24 months and beyond.
“Tenants are prioritizing buildings that are energy efficient, free from onsite fossil fuels and powered by clean energy,” JLL says. “For construction projects, occupiers are beginning to focus on lower embodied carbon designs.”
With the increasing adoption of work-from-home and hybrid models, demand for new commercial real estate construction drastically slowed since the Covid pandemic, and low-carbon office space supply is struggling to keep pace with an uptick in demand. So, businesses will be challenged to find space that meets their corporate environmental goals.
“Today, rightsizing and ‘flight to quality’ are driving leasing decisions,” JLL says. “The concept of 'flight to quality' is evolving to encompass energy performance and sustainability credentials.”
Related Stories
| Sep 11, 2012
New York City releases first energy benchmarking data for private buildings
City is first in U.S. to disclose private-sector building energy data from a mandatory benchmarking policy.
| Sep 7, 2012
Goettsch Partners designs new tower in Abu Dhabi
Al Hilal Bank’s 24-story flagship development provides contemporary office space.
| Sep 7, 2012
Suffolk awarded One Channel Center project in Boston
Firm to manage $125 million, 525,000-sf office building project.
| Sep 7, 2012
Manhattan Construction Co. to build Fairfax office building
Designed by Noritake Associates of Alexandria Virginia, the project is LEED-registered, seeking LEED Silver certification.
| Aug 21, 2012
Hong Kong’s first LEED Platinum pre-certified building opens
Environmentally-sensitive features have been incorporated, including reduced operational CO2 emissions, and providing occupiers with more choice in creating a suitable working environment.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.
| Jul 24, 2012
Dragon Valley Retail at epicenter of Yongsan International Business District
Masterplanned by architect Daniel Libeskind, the Yongsan IBD encompasses ten city blocks and includes a collection of high-rise residences and commercial buildings.
| Jul 20, 2012
2012 Giants 300 Special Report
Ranking the leading firms in Architecture, Engineering, and Construction.
| Jul 20, 2012
Office Report: Fitouts, renovations keep sector moving
BD+C's Giants 300 Top 25 AEC Firms in the Office sector.
