The interim results of a sustainability survey conducted by CoreNet Global and sponsored by Jones Lang LaSalle have revealed that sustainability is already a critical issue and 65% of respondents attending the European summit are prepared to pay a premium for greener real estate.
Most respondents are willing to pay enough to buy or lease sustainable buildings. Over half of respondents (51%) indicated that they would be prepared to pay between 1-5% more for a sustainable real estate solution, with a further 12% indicating they would be willing to pay up to 10% more, illustrating that it is a key priority for many organizations to occupy sustainable buildings.
However, the report also shows that while there is a willingness to pay the price for green property, the availability of sustainable solutions is generally regarded as patchy, with almost 49% of respondents indicating that the supply is good is some markets but not in others, and over 44% of respondents complaining of the limited availability of 'green' stock, which will inevitably have a knock on effect on adoption rates.
In addition, respondents felt that generally the provision of green real estate solutions is hampered by a lack of pro-activity around sustainability from among a number of key groups, with only 5% regarding contractors are proactive, 7% regarding landlords and owners as proactive, and 14% regarding developers as proactive. Architects and designers, in contrast, were regarded as the most proactive in seeking sustainable solutions, scoring 51.2% and 44.2% respectively. These findings demonstrate the great opportunity across the supply chain for companies that are proactive in delivering sustainable solutions to their clients.
Other key findings from the survey include that a 84% of delegates believe that sustainability is already a critical issue within corporate real estate.
The survey was conducted by Jones Lang LaSalle from among attendees at CoreNet Global's European Summit in London (17-19 September), which welcomed 475 corporate real estate professionals and took the theme "Greening the Bottom Line: Making Sustainability Count".
Linda DeMars, CoreNet Global, comments, "While we must stress that these are interim findings and that the survey is ongoing, it is interesting to note that the findings so far are homogenous with those from our Asian, North American and Australian summits. This survey clearly demonstrates that sustainable real estate solutions are indeed a critical issue for our summit attendees.
Chris Hiatt, Jones Lang LaSalle, comments, "It was encouraging to see the response from occupiers that they are willing to pay more in order to achieve their green agenda and CSR policies. This should encourage more building owners and developers to provide sustainable developments."
Source: Jones Lang LaSalle/CoreNet