According to a new report from real estate company JLL, the market for environmentally friendly buildings is on pace to increase significantly over the next two years as organizations that have committed to reducing emissions look to move on from current leases into greener alternatives. However, the demand for low-carbon building currently exceeds the available supply.
Around 7,600 companies globally have committed to the Science Based Targets Initiative and aim to reach net-zero emissions by 2050. With much of those emissions tied to offices and factories, committed companies are looking for a way make a change.
It’s estimated that only one-third of future demand for low-carbon workspaces is forecast to be met by 2030 globally. In New York, however, it’s expected that nearly two-thirds of the demand will not be met.
“Time is of the essence for the real estate industry,” Guy Grainger, JLL’s Global Head of Sustainability Services and ESG, said. “We are in a new world where inaction over decarbonization will see investments fall into economic obsolescence in the coming years. While for real estate tenants, this growing need to show progress against carbon commitments will lead to price friction and a race for low-carbon buildings.”
