SINGAPORE: Singapore has emerged as the regional leader in the adoption of green office buildings, with 79% of its Grade A office spaces now certified under green building standards, according to a recent report by CBRE. This achievement places the country ahead of other mature markets in the Asia Pacific region, including Sydney (67%) and Melbourne (66%).
The high proportion of green-certified office spaces in Singapore reflects the growing demand for sustainability in the commercial real estate sector. These green buildings, which prioritize energy efficiency and environmental sustainability, continue to outperform their non-certified counterparts in terms of occupancy rates, offering tenants long-term cost savings and a healthier work environment.
However, CBRE notes that the rental premium for green offices in Singapore has narrowed. This is attributed to the increasing prevalence of green-certified spaces, making sustainability features a standard expectation rather than a unique selling point. As more buildings receive green certification, the additional cost of renting a sustainable office space has diminished, reflecting the broader market trend toward sustainability.
Despite global economic challenges, corporate commitment to environmental goals remains strong across Asia Pacific, with 65% of businesses, including those based in Singapore, still dedicated to achieving net-zero emissions. However, many companies are extending their target timelines due to rising costs and the complexity of implementing sustainability initiatives.
In Singapore, both landlords and tenants are embracing more collaborative approaches to decarbonisation. Green leases, which include clauses related to energy efficiency and sustainability, are becoming increasingly common, and many landlords and tenants are co-investing in energy retrofits to improve building performance and reduce carbon footprints.
The trend towards sustainable real estate is expected to grow, with an increasing number of businesses looking to align their operations with global environmental goals.