CBRE’s latest report, “Decarbonising Asia Pacific’s Office Buildings,” reveals that over half of the office space in the Asia Pacific region now holds green building certification, marking a 6.5% increase from the previous year. This development underscores the growing commitment to sustainability within the real estate sector, as both landlords and occupiers strive to meet global climate targets.
Green buildings are pivotal in the decarbonisation efforts of the real estate industry, offering opportunities for innovation and economic growth. Ada Choi, Head of Research, Asia Pacific for CBRE, noted, “Despite some occupiers delaying their 2030 net zero targets due to business growth and energy demand from AI adoption, more companies are showing strong commitment to achieving net zero by setting up their goals.”
The report highlights several key trends:
– **Green Building Adoption Rates**: Major cities such as Sydney, Singapore, and Tokyo are leading in green building adoption, with mainland China and India also making significant progress.
– **Green Rental Premiums**: Green buildings command rental premiums of up to 4% over non-green buildings, with the highest premiums observed in Mumbai, Hong Kong SAR, and Bangalore.
– **Occupancy Rates**: Grade A green buildings in the region boast an average occupancy rate of 83% as of Q2 2024, outperforming non-green buildings by approximately 2%. Seoul, Taipei, and Singapore have the highest occupancy rates.
As the gap between what landlords offer and what occupiers commit to narrows, the alignment on net-zero timelines is expected to improve, further advancing the region’s sustainability goals.
“`
