Green office leasing quadruples in post-COVID realty landscape: JLL-CRE Matrix

economictimes.indiatimes.com:

green office spaces in India's major property markets is witnessing a rise, propelled by the joint efforts of occupiers, developers, landlords, and investors. This uptick reflects a shared commitment to lowering carbon emissions and endorsing sustainability initiatives.

The share of green leasing has surged to 16% in 2022-2023 from 4% in 2018-19, indicating significant progress, showed a JLL-CRE Matrix study that has examined over 1,530 leases covering over 225 million sq ft between January 2018 and September 2023.

The proportion of green leasing has quadrupled during the 2022-2023 period compared to the pre-COVID years of 2018-2019. This translates to a 132% increase in leased area, from 3.7 million sq ft to 8.6 million sq ft. This remarkable surge serves as a testament to the joint efforts of asset owners and occupiers to promote responsible leasing practices in the industry.

However, widespread adoption is still a long way, and this can be attributed to the lack of industry-wide guidance, transparency, legal complexities, and split incentives. While the beginnings of change are already evident, India still has a long road to travel on the green lease continuum.

“Sustainability has now firmly been incorporated into the board room agenda. Various strategies are being devised to reduce carbon emissions from the built environment, and green building certifications and green leases play a crucial role in this endeavor. The Indian market is making significant strides towards sustainability and the increase in green-certified office penetration from 39% in 2020 to 53% in 2023, is a clear indication of this progress,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

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