Canadian cities set the pace, with 51.6 percent of the space in Vancouver and 51.0 percent in Toronto holding "green" certifications. This is particularly notable for Vancouver, as the city has a formal initiative and action plan - "Greenest City 2020" - toward becoming the greenest city in the world by 2020. In Vancouver and Toronto, green-building trends will continue to drive both new development and redevelopment of office product. In Vancouver, more than half of the 1.5 million-square feet of product under development is being built to high green certification standards, while much of Toronto's existing class A product is undergoing intensive capital improvement projects that include upgrades aimed at earning green certifications as well.
Increased demand for more environmentally responsible buildings from governments, corporate tenants and institutional investors have been particularly evident in cities where "green" properties made up virtually no part of the office market just a few years ago. For instance, the Australian cities of Sydney and Melbourne, third and fourth in the index, saw their "green" office square footage increase from less than one percent in 2006 to more than 46 and 28.8 percent, respectively. Additionally, Warsaw's "green" office market was essentially non-existent as recently as 2010, but now comprises 21.3 percent of space tracked by CBRE.
Even the markets that reported the smallest percentage of green office space relative to their total office property inventory saw noticeable growth. Paris, the largest market in the study, saw green building certifications increase from 0.1 percent in 2007 to 9.1 percent in 2017; while the second largest market, London, went from 0.2 percent in 2010 to 8.7 percent in 2017.
Similarly, Frankfurt reported 17.5 percent green product, up from 1.4 percent in 2009; Stockholm reported 12.6 percent, up from 1.2 percent in 2011; and Amsterdam reported 11 percent, up from 0.1 percent in 2011.
Green properties have outperformed the market in many of these cities. By example:
"Buildings, particularly commercial properties, have long been at the forefront of pressing issues like water, waste, and significant energy use and the resultant carbon emissions," said David Pogue, CBRE's Senior Vice President, Global Client Care/Sustainability. "As the attention being paid to these issues grows, green building certification programs are becoming much more prevalent and more important to a variety of constituents and stakeholders."
"Despite the presence of a wide variety of local building certification programs, internationally recognized green building certificates tend to be more widely adopted in the commercial real estate market. Tenants and investors need such standardized measures of environmental performance," said Dr. Rogier Holtermans, project lead on the International Green Building Adoption Index.
SOURCE : WORLD PROPERTY JOURNAL