A new report by JLL outlines immediate opportunities for building owners to boost economic value through energy efficiency retrofits and strategic decarbonisation.
The 11-page report ‘Low carbon buildings create economic value’, is based on analysis of energy and emissions data from 46,600 buildings across 14 cities worldwide. The report underscores the opportunity for building owners and occupiers to leverage the shift toward net zero to drive economic value.
Importantly, the report warns that failure to act could leave properties at risk of obsolescence, with 65% of office buildings and 75% of multi-occupancy residential properties potentially facing ‘stranding risk’ by 2030.
JLL: The opportunity is now
This rising demand has created a “supply gap” for low-carbon spaces. JLL stresses that owners who act now to decarbonise will position themselves as preferred landlords for climate-conscious occupiers.
The report says that corporate tenants, motivated by ambitious sustainability commitments, are actively searching for buildings that align with their emissions reduction goals.
Lighting controls are a cost-effective, energy efficiency measure
Among the suite of retrofit options available, JLL highlights the impact of ‘light’ measures, which include the use of advanced lighting controls, to improve energy efficiency. The report includes energy efficiency as part of a three-pronged approach to decarbonising buildings:
- Energy efficiency: Enhancing operational efficiency through upgrades like lighting controls, optimized HVAC systems, and smart technology can provide immediate returns in terms of energy savings and reduced costs.
- Electrification: Converting traditional fossil fuel-based systems to electric ones, such as electric heating and cooling, can help cut emissions and allow properties to leverage renewable energy sources.
- Clean energy: Integrating renewable energy solutions, whether through on-site generation or by procuring clean energy from external sources, is key to achieving long-term sustainability goals.
Economic and regulatory resilience
Investing in these three areas, JLL says, offers more than environmental benefits. Lower operational costs, reduced regulatory risks, and enhanced tenant appeal are all part of the economic value proposition.
As corporations increasingly prioritise environmental, social, and governance (ESG) factors, low-carbon buildings can also enhance tenant retention and help owners attract high-calibre employees who value sustainability.
- You can download the report here.
