October 31st, 2007
Recent Survey Looks At Global Views On Sustainability
CoreNet Global, an international association of workplace and corporate real estate executives, and Jones Lang LaSalle, a real estate service provider, queried more than 2,300 attendees of CoreNet Global Summits on four continents in recent months, with 414 responding. After analyzing the responses, the two groups learned that a large majority of companies around the world view sustainability as critical to their business and are willing to pay a premium to help their companies become more sustainable.
At CoreNet Global Summits in London, Melbourne, Denver and Singapore, 414 industry professionals took the survey called, “Sustainability Perceptions and Trends in the Corporate Real Estate Industry.” Over 2,300 were queried for an 18% response rate.
CoreNet Global and Jones Lang LaSalle found that, for 79% of respondents, sustainability is a near-term business issue that’s important today, or will be in the next one to two years.
“As a result of this survey, it’s crystal clear to us that a focus on sustainability has become important to the Fortune 500 and similar companies around the world,” says Eric Bowles vice president and director of research for CoreNet Global.
“These findings reinforce what we are hearing from clients every day: more and more companies are recognizing the business case for sustainability, and their corporate real estate departments are charged with making it happen to a large extent,” said Ben Breslau, vice president, director of occupier research at Jones Lang LaSalle.
According to the survey, most companies are willing to pay for sustainable real estate solutions. Among the findings–77% are willing to pay a premium for sustainability, while 22% expect to pay the same.
There was a gap between what sustainable real estate solutions actually cost and the perception of what they will cost. Studies indicate that designing buildings energy efficiently, or building them to LEED certification will cost about 1% to 5% more than conventional construction, and the incremental cost is falling.
A large proportion of respondents thought sustainable designs were more expensive that they really are, with respondents’ perceptions varying widely–
* 52% say premiums will be 5% or more to build in a sustainable manner.
* 22% of them believe green buildings will cost 10% more than conventional building.
* 38% said sustainable buildings will cost 1% to 5% more.
* 1% say it’s actually less expensive.
* 8% said those buildings will cost the same.
Despite the opportunity to apply techniques to make buildings more environmentally friendly, respondents to the CoreNet Global/Jones Lang LaSalle survey found obstacles to sustainability that have hindered widespread adoption–
* 17% said that there is good, or widely available, sustainable real estate solutions in markets where their companies need to locate offices.
* 42% reported patchiness and said the supply chain is good in some markets but not others.
* 41% view overall availability as limited or minimal.
The intensity of sustainable views varies from continent to continent. According to the results:
* 61% of respondents in Europe feel sustainability is a critical business now.
* 53% feel that way in Australia.
* The survey also noted that 44% of respondents who attended the Denver Global Summit feel that sustainability is critical now.
“We have passed the tipping point for sustainability, and the question is no longer about whether sustainable design should be considered. The question will be, how do you explain why you chose not to have a sustainable design,” says Bowles of CoreNet Global.
“Sustainability is not a passing fad. It’s a business imperative from Australia to Hong Kong and from the U.S. to Germany,” adds Jones Lang LaSalle’s Breslau.
About CoreNet Global
CoreNet Global members manage US $1.2 trillion in worldwide corporate assets consisting of owned and leased office, industrial and other space. With 7,000 members representing large corporations around the world, CoreNet Global
About Jones Lang LaSalle
Jones Lang LaSalle has approximately 160 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of over $2.0 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of over 1.0 billion square feet worldwide.
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