Green office towers in Hong Kong command the highest rental premium in Asia, JLL says
- Grade A buildings in Hong Kong with green certification fetched rental premiums up to 28 per cent more because of limited supply
- The premium for green buildings in Singapore ranged between 4 per cent and 9 per cent amid ample supply
Hong Kong has the highest rental premium for green certified buildings in Asia amid a shortage of supply, as tenants demand real estate solutions to meet their sustainability agenda, according to consultancy JLL.
There is a strong link between assets that hold green credentials and their rental performance in Asia, and landlords that do not evolve their buildings to meet sustainability standards may suffer financially, according to the report.
“The evidence that resilient and sustainable buildings in Asia enjoy a distinct occupancy and rental premium, against their non-certified contemporaries, is now irrefutable,” said Kamya Miglani, JLL’s head of environmental, social and governance research in Asia-Pacific.
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“Occupiers’ willingness to pay a premium will likely continue as society shifts towards an emphasis on green and sustainable spaces in a bid to address the concerns on climate risk and to meet ESG demands.”
Only 29 per cent of Hong Kong’s Grade A office towers, or 2.7 million square metres of gross floor area, have received green building certifications.
