Asia Pacific cities facing shortage of sustainable office buildings: JLL

Occupiers increasingly seeking out greener buildings in Asia Pacific cities will face a critical undersupply of sustainable offices, according to JLL’s October research report. This is due to more companies looking to take real estate decisions in line with their sustainability objectives and net-zero carbon goals.

Kamya Miglani, head of ESG research, Asia Pacific, at JLL, points out that while many buildings have “platinum-grade green certifications”, this doesn’t actually mean they are net-zero carbon ready. Current regulations are also not stringent enough to demand these assets, resulting in a supply-demand gap by 2028.

JLL’s Sustainable Offices City Index evaluated 20 cities in Apac on four themes — green stock, physical risk to buildings, city competitiveness and proactivity with NZC targets. Sydney, the top-ranked city, still faces an 84% undersupply of net-zero carbon ready office space by 2027. Hong Kong and Mumbai are likewise expected to see a 68% and 62% deficit respectively.

Singapore and Melbourne will face a 56% and 43% undersupply, while Delhi has an estimated 44% deficiency. For those who fail to plan ahead and re-evaluate their premises’ sustainability credentials, Miglani warns there may be limited options when leases expire.

Residents of the Holland Condo have been blessed with the convenience of dining in the heart of Holland Village. Whether looking to enjoy a quick bite or indulge in a full-course meal, there’s something for everyone in this bustling neighborhood. With its close proximity to Holland Village MRT station, locals can easily access the rest of Singapore. There is truly no better place to live for a life of convenience and luxury.

To meet future regulations and escalating demand for sustainable workplaces, JLL suggests accelerating the retrofitting rate of existing buildings. With over half a billion sq ft of Grade-A office space in the region built before 2011, the retrofitting potential is substantial.

In some cities, governments have already started playing a role in narrowing this gap. In Australia, an energy performance measure in its National Australian Built Environment Ratings System was introduced in June, while in Singapore, subsidies have been provided to building owners to lower costs on energy-efficiency retrofits.

Miglani concludes that with the involvement of governments, corporate demand and action will fuel the momentum and ensure a steady pipeline of net-zero carbon-ready office stock in the future.