Companies are paying more to rent space in Asia’s green buildings

Occupiers in Asia are paying a rental premium of up to 28 percent for green certified offices in major Asia cities, according to JLL, as corporations look to meet ambitious net-zero targets.

JLL analysis shows that the range of green premiums are correlated to the uneven supply-demand gap of green certified versus non–green certified buildings across many cities, which is insufficient to meet the occupier demand for sustainable buildings.

According to analysis in JLL’s report The Value of Sustainability: Evidence for a Green Premium in Asia, when location, building age and amenity factors are held constant, assets with green credentials generate more occupier demand and achieve rental premiums. In Asia, green certification activity gained momentum in the last decade, and 75 percent of the existing green certified Grade A