Over half of APAC office buildings now green-certified

This reflects a 6.5% increase from last year.

CBRE’s latest “Decarbonising Asia Pacific’s Office Buildings” report reveals that over half (51%) of office space in the Asia Pacific region has now acquired green building certification, marking a 6.5% year-on-year increase.

Here’s more from CBRE:

Green buildings play a vital role in the real estate industry’s decarbonisation journey for both landlords and occupiers. Decarbonising office buildings is not only essential for meeting global climate targets but also presents a unique opportunity for innovation and economic growth.

“Despite some occupiers delaying their 2030 net zero targets due to business growth and energy demand from AI adoption, more companies are showing strong commitment to achieving net zero by setting up their goals. Meanwhile, large asset owners are making steady progress towards decarbonising real estate. We expect that the gap between what landlords offer and what occupiers commit to will gradually narrow, eventually leading to alignment between the two parties on the net-zero timeline,” said Ada Choi, Head of Research, Asia Pacific for CBRE.

Key highlights include:

• Green Building Adoption Rates: Major Australian cities, Singapore, and Tokyo lead the way in green building adoption, while mainland China and India are making progress.
• Green Rental Premiums: Green rental premiums can up to a 4% over non-green buildings, with variations according to the green adoption rate in different markets. The largest premiums observed in Mumbai, Hong Kong SAR, and Bangalore.
• Occupancy Rates: The average occupancy rate for Grade A green buildings in APAC reached 83% as of Q2 2024, approximately 2% higher than non-green buildings. Seoul, Taipei, and Singapore boast the highest occupancy rates.