- May 1, 2024: Vol. 16, Number 5

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Lease markets reach ‘green tipping point’

by Andrea Zander

The next two years will be a critical time for corporate occupiers looking for real estate space that reflects and supports their carbon commitments. JLL’s Green Tipping Point research finds that one out of every three leases tied to a carbon commitment will expire by then — yet supply of office and industrial space that meets their criteria is lagging across major cities.

In the United States, Canada, Europe and Australia, average lease terms are seven to 10 years; many leases signed today will collide with the first important checkpoint of halving emissions by 2030. The research reveals, however, that in 21 cities globally, 30 percent of projected demand for low-carbon space will not be met by 2025, and this could even exceed 70 percent by 2030.

For investors, the effects of carbon commitments on real estate demand will create a tipping point where investments in low-carbon buildings will start to pay dividends. This shift is creating both urgency and op

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