The Green Tipping Point

Written by JLL

The year 2024 could be a defining moment for the commercial real estate sector. As businesses worldwide intensify their carbon reduction commitments, the impact on lease markets is expected to be significant. 

As part of our ongoing thought leadership initiative, GRI Club is pleased to share a new JLL report - The Green Tipping Point - which offers critical insights into how these environmental pledges are set to reshape the landscape of real estate leasing.

The shift towards sustainability in the real estate sector has become a strategic imperative, with tenants increasingly prioritising energy-efficient, fossil fuel-free buildings powered by clean energy. This growing demand for low carbon office space is outpacing supply, creating both challenges and opportunities for corporate occupiers and investors.

(Source: JLL Research, 2024)

As the market evolves, aligning lease strategies with carbon reduction goals will be crucial, requiring proactive collaboration with landlords. With sustainability now a key factor in leasing decisions, the potential supply-demand imbalance in major cities by 2025 underscores the urgent need for investment in buildings with strong carbon performance, positioning forward-thinking investors as leaders in a rapidly changing market.

JLL’s report highlights the emerging trends and key challenges that will influence the future of lease markets as sustainability becomes a driving force, providing valuable foresight into the dynamics between supply and demand for low carbon office spaces and exploring the opportunities that lie ahead for both occupiers and investors.

Learn more by accessing the full report here!