Building Energy Exchange’s Post

The next two years will be a critical time for corporate occupiers looking for real estate space that reflect and support 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.

I recently wrote this piece for Method Recycling, analysing the commercial real estate market in the U.K., tightening energy efficiency rules and the trend among investors and banks to focus on real carbon reductions as tenants seek leases that align with their environmental, social and governance (ESG) agenda. High interest rates and work from home are our new normal. There is a smaller pool of tenants. Ultimately, commercial real estate owners will need to make hard decisions about the future of their assets and the investments that could save them. And, whether the U.K. policy results in actual decarbonisation in operations is another question altogether. #climateaction #wastemanagement #decarbonisation

Are you in the business of justifying carbon reduction projects in existing buildings? What levers do you use to drive action?

I don't care about getting carbon out of my building 🏢 ... Well... statistically, anyways. This week I learned that the average length of condo ownership in my city is 3 years. While that's particularly short, in asset management, the average hold period of a real estate investor is also < 10 years. It begs the question, if I'm either of these owners, why would I take on a five, six, even seven figure voluntary retrofit project for a property that I plan to exit soon? I wouldn't, at least not without good reason. I'm in the fortunate position of helping savvy investors identify those good reasons. Here are just three: 🥕 Massive incentives are killing the 'green premium'. Equipment breaks, roofs leak, you need to replace them. Most cities have retrofit incentives that will bring the cost of the 'carbon conscious' option to the same price as the business as usual option. Government spending on incentives passed $250B annually in 2022. https://lnkd.in/gUFiyCQY 🏒 Penalites are coming! Building owners in New York are already feeling the effects of building performance standards, but many don't know that over 40 other jurisdictions are following suit. Like it or not, carbon is going to cost. https://lnkd.in/gsmBV33a 🏭 Corporate tenants need low carbon floorspace. Global supply chains are pricing in carbon, and every corporate will need to account for and minimize it's footprint to stay competitive. A recent report from JLL identified that demand for low carbon space will soon outstrip supply. https://lnkd.in/gVmbxD4z Have you invested in decarbonizing your properties? Do you help others to make the case? What levers do you use to make it happen? #decarbonization #sustainablerealestate #assetmanagement

The rise of EV's is reshaping the commercial and multifamily landscape. A great revenue potential with explosive adoption, and many businesses making ESG commitments including EV charging in leases as a way for tenants to demonstrate their commitment to sustainability. Look for Partnerships and collaboration to help streamline installation and manage charging infrastructure... we can help guide you. #evcharger #electricvehicle #electricmotorcycles #evesco #accharger

Great insights about lowering real estate occupancy costs. Strategies include renegotiating leases, subleasing unused space, leveraging co-working options, consider energy efficiency upgrades and optimizing space usage. Keeping costs down is essential for maintaining a healthy bottom line. https://lnkd.in/gkRC9KVz

Our head of property and asset management Richard Fennell shared with The Australian Financial Review five crucial considerations for building owners and operators to attract prime tenants (premium rents and lower vacancy will naturally follow). https://co.jll/45Z9y3u #JLLAus #office #property

Stay ahead in the ever-evolving world of commercial real estate! From the continued rise of remote working to the increasing emphasis on sustainability and eco-friendly practices, there's a lot to navigate in the coming year. Let's stay ahead of the curve together! Read the full article here. #BeSeenWithVSEEN #VSEENRealEstate #RealEstateMarketing #NYCRealEstate #RealEstateProfessionals #HousingMarketInsights #SpringMarketTrends #NYC #Midtown #Manhattan https://lnkd.in/etvcwheZ

It’s time to align #ESG in commercial real estate. What does that look like? Our experts explain here: https://stantec.co/3xf4WuB #CommercialRealEstate #CRE

Eagle Street Partners, represented by Savills, has completed a significant lease renewal with Curtiss-Wright Corporation at Richview Office Park in the south Dublin suburb of Clonskeagh: http://savi.li/6042iSEn4 A collaborative effort in line with both parties' dedication to #ESG principles has led to an extensive refurbishment plan aimed at enhancing the building's operational and environmental performance, elevating it to BER A3. Upgrades include the replacement of gas-fired systems with electric alternatives, installation of solar power, and LED lighting. These improvements are expected to reduce energy intensity and operational costs considerably, with Eagle Street investing €2.7 million in the project. Savills Seán Ryan Mc Caffrey says: "Landlords and tenants are aligning in their ESG principles, and this transaction is proof that collaboration is essential. It is a key area of focus for Savills and in-house we have the necessary full service offering to guide our clients."