Worldwide Rise In Green Building Certifications In Global Property Markets
The International Green Building Adoption Index (IGBAI) has revealed that main metropolitan office markets throughout the world have seen a noticeable rise in their adoption of what is referred to as the ‘green’ building certification programs. Back in 2007, just 6.4% of the markets were green but today, across the 10 markets in Canada, Europe and Australia, 18.6% of the spaces are now green.
One of the major places where there was the highest rise in green spaces was Canada. Canada had 51.6% of the green spaces and these spaces were found in Vancouver. The other 50% were in Toronto. Vancouver has long been on an agenda to become the “Greenest City 2020” by 2020- It wants to become the greenest city within 2 years from now, so the rise in green office buildings in that part of Canada does not come as a surprise. Even now in Vancouver, all the new office buildings that are being built or are under development are being made to help with green certification standards.
The demand for green properties is high where previously, there were no demands of such properties at all. Just few years ago, nobody spoke of green properties. Today, everybody is. For example in Sydney and Melbourne, which rank 3rd and 4th in the IGBAI, the green office square footage increased from less than 1% in 2006 but was more than 46% and 28.8% respectively today. Also, Warsaw also had a non existent green office market till 2010 but there are now 21.3% companies being seen in the ‘green’ realm in that part of the world.
There were also markets that reported small percentage changes in the green office spaces compared to the total office property inventory and they even experienced a prominent growth. For instance, Paris, which was the largest market in the study, had a rise in its green building certifications from 0.1% back in 2007 to 9.1% in 2017, whereas London, which is the 2nd largest market in the world for greens according to the IGBAI, went from just 0.2 percent in 2010 to now, 8.7% in 2017. All others, including Frankfurt, Stockholm and Amsterdam also reported rises in green spaces from few years ago.
It is also interesting to note that the green properties outperformed the markets in a lot of these cities. For instance, last year in 2017, the Australia’s Green Property Index figures shows that on an average basis, the cumulative 3 year annualized returns for these Green Star-6 star rated office buildings increased to 15.6% as compared to the 12.8% return for the rest of the market. Additionally, in the initial nine months of last year, 1/4th of the Frankfurt’s 4.6 million square feet lease activities were in these green buildings.
According to CBRE’s Senior VP, David Pogue, buildings, especially commercial properties, have been dealing with major issues such as waste, water and high-energy use and there have been carbon emissions as well. Since the attention towards these products have increased, the green building certification programs are also on the rise now and more obvious. They are also important to stakeholders as well.