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
Multifamily Housing | Jan 23, 2023
Long Beach, Calif., office tower converted to market rate multifamily housing
A project to convert an underperforming mid-century office tower in Long Beach, Calif., created badly needed market rate housing with a significantly lowered carbon footprint. The adaptive reuse project, composed of 203,177 sf including parking, created 106 apartment units out of a Class B office building that had been vacant for about 10 years.
Mechanical Systems | Jan 17, 2023
Why the auto industry is key to designing healthier, more comfortable buildings
Peter Alspach of NBBJ shares how workplaces can benefit from a few automotive industry techniques.
Government Buildings | Jan 9, 2023
Blackstone, Starwood among real estate giants urging President Biden to repurpose unused federal office space for housing
The Real Estate Roundtable, a group including major real estate firms such as Brookfield Properties, Blackstone, Empire State Realty Trust, Starwood Capital, as well as multiple major banks and CRE professional organizations, recently sent a letter to President Joe Biden on the implications of remote work within the federal government.
Sustainability | Jan 9, 2023
Innovative solutions emerge to address New York’s new greenhouse gas law
New York City’s Local Law 97, an ambitious climate plan that includes fines for owners of large buildings that don’t significantly reduce carbon emissions, has spawned innovations to address the law’s provisions.
Fire and Life Safety | Jan 9, 2023
Why lithium-ion batteries pose fire safety concerns for buildings
Lithium-ion batteries have become the dominant technology in phones, laptops, scooters, electric bikes, electric vehicles, and large-scale battery energy storage facilities. Here’s what you need to know about the fire safety concerns they pose for building owners and occupants.
Cladding and Facade Systems | Dec 20, 2022
Acoustic design considerations at the building envelope
Acentech's Ben Markham identifies the primary concerns with acoustic performance at the building envelope and offers proven solutions for mitigating acoustic issues.
Sponsored | Resiliency | Dec 14, 2022
Flood protection: What building owners need to know to protect their properties
This course from Walter P Moore examines numerous flood protection approaches and building owner needs before delving into the flood protection process. Determining the flood resilience of a property can provide a good understanding of risk associated costs.
HVAC | Dec 13, 2022
Energy Management Institute launches online tool to connect building owners with HVAC contractors
The National Energy Management Institute Inc. (NEMI) along with the Biden administration’s Better Air in Buildings website have rolled out a resource to help building owners and managers, school districts, and other officials find HVAC contractors.
Adaptive Reuse | Dec 9, 2022
What's old is new: Why you should consider adaptive reuse
While new construction allows for incredible levels of customization, there’s no denying that new buildings can have adverse impacts on the climate, budgets, schedules and even the cultural and historic fabrics of communities.
High-rise Construction | Dec 7, 2022
SOM reveals its design for Singapore’s tallest skyscraper
Skidmore, Owings & Merrill (SOM) has revealed its design for 8 Shenton Way—a mixed-use tower that will stand 63 stories and 305 meters (1,000 feet) high, becoming Singapore’s tallest skyscraper. The design team also plans to make the building one of Asia’s most sustainable skyscrapers. The tower incorporates post-pandemic design features.
