Property managers prepared to pay green premiumMay 2009
Property management executives in Asia Pacific are more willing than their global counterparts to invest in sustainability, according to a specialist in the field.
A survey conducted by Jones Lang LaSalle, the commercial property management and leasing specialist, and CoreNet Global, a trade body for real estate executives, showed that 60 per cent of Asia Pacific respondents were willing to pay a rental premium for a sustainable building. This contrasted with around 40 per cent of respondents globally.
Of those Apac respondents that were prepared to pay a premium, most were willing to pay up to ten per cent more rent to occupy a sustainable building. Only six per cent would consider paying more than a ten per cent premium, but that was still double the three per cent global average.
Asia Pacific respondents were also more willing to pay extra to retrofit existing space.
Chris Wallbank, the Jones Lang LaSalle Asia Pacific head of energy and sustainability services, said a general complaint in the Asia Pacific region was that there were even fewer sustainable properties in the market than in 2007. ‘In tough economic times the ability of efficiency initiatives to deliver bottom-line returns is increasingly important,’ he said. ‘We have seen that savings of up to 15 per cent are achievable in most existing buildings, using conventional technology that is available today.’
More than 400 corporate real estate executives throughout the world participated in the global sustainability survey, which was the second of its kind and was undertaken in September and October 2008.
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