Research from JLL finds that retrofitting rates need to
triple to meet the goals in the Paris Agreement
CHICAGO, Nov. 10,
2022 /PRNewswire/ -- As businesses grapple with the
current energy crisis and prepare for it to worsen, new research
from JLL (NYSE: JLL) finds that these rising energy costs are
expediting the move toward more efficient buildings.
JLL's Retrofitting Buildings to be Future-Fit research reveals
that net-zero carbon (NZC) intervention measures directly impact a
building's bottom line and that failing to decarbonize leads to
significant financial risk. For many buildings, meeting 2050
decarbonization targets put forward in the Paris Climate Agreement
is grounded in retrofitting current spaces, which can also garner
higher rents, reduce financial risk and generate higher occupancy
rates and tenant satisfaction.
"Retrofitting existing buildings is the quickest and most
cost-effective way to accelerate decarbonization in the built
environment," said Guy Grainger, JLL
global Head of Sustainability Services and ESG. "Whether it is
lenders on real estate or occupiers of buildings, requirements are
changing and real assets will become illiquid unless there is a
plan to transition them."
JLL's research reveals that in the global north,
retrofitting rates need to triple from barely 1% today to
at least 3% of existing buildings per year to meet
decarbonization targets. An estimated US $3 trillion will be
required in the office sector alone to meet these
targets. In the developing world, new commercial and residential
real estate will need fresh approaches prioritizing carbon and
energy efficiency to improve resilience to climate change and
contribute to a more sustainable future. Addressing the knowledge
gap, upskilling the workforce and scaling technology will be
critical to accelerating the pace of retrofitting.
"Retrofitting does not need to be an all at once endeavor. But,
reporting and disclosure is not enough - this requires intentional
investment and a strategic approach," said Grainger. "Retrofits are
both more viable and responsible when considered in tandem with
broader asset repositioning that responds to changing workplace
dynamics and climate resilience. We have enough proof points
that show we have been underestimating the return upside of
intervention and underestimating the value downside of
inaction."
Retrofitting buildings to be more energy efficient will also
require owners and occupiers to deepen relationships and form new
business models to gain the significant value they both have when
investing in sustainability. The alignment of stakeholders extends
beyond just the landlord and tenant as suppliers, building
operators, management teams, on-site teams, and even local
governments must work together to transition to a low-carbon
economy.
The Retrofitting to be Future-Fit report with expert insights on
how companies and those invested in the global real estate economy
can successfully decarbonize their real estate will be discussed
during the Retrofitting and Resilience webinar on Nov.10,
2022, at 3 pm GMT/9 am CT/10 am ET as
part of COP27.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. JLL shapes
the future of real estate for a better world by using the most
advanced technology to create rewarding opportunities, amazing
spaces and sustainable real estate solutions for our clients, our
people and our communities. JLL is a Fortune 500 company with
annual revenue of $19.4 billion,
operations in over 80 countries and a global workforce of more than
102,000 as of September 30, 2022. JLL
is the brand name, and a registered trademark, of Jones Lang
LaSalle Incorporated. For further information, visit jll.com.
Connect with us
https://www.linkedin.com/company/jll
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https://twitter.com/jll
Contact: Gayle Kantro
Phone: (312) 228-2795
Email: Gayle.Kantro@am.jll.com
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SOURCE JLL