MANILA, Philippines — Real estate services and consultancy firm JLL Philippines said more developers are putting up green buildings in response to greater demand from occupiers.
“The pandemic helped to increase the demand for green buildings, and this awareness must be augmented by government support through policies and incentives, as well as real estate firms adapting and promoting sustainability efforts among their clients,” said Joey Radovan, vice chairman at JLL Philippines.
He said this aligns with broader real estate sustainability developments across Asia Pacific where 40 percent of corporate occupiers have already adopted net zero carbon emission targets and another 40 percent are planning to adopt targets by 2025, as shown in a JLL Asia Pacific survey.
The survey showed that across Asia Pacific, society is shifting toward an emphasis on green and sustainable spaces in a bid to address the concerns on climate risk. Seven in 10 occupiers are willing to pay a premium to lease green buildings, validating the belief of about 72 percent of investors that green certifications – such as LEED (Leadership in Energy and Environmental Design) and BERDE (Building for Ecologically Responsive Design Excellence) – drive higher occupancy, higher rates, higher tenant retention, and overall higher value of assets.
In the Philippines, rent premium between green buildings versus non-green buildings typically ranges from two percent to 23 percent.