JLL Korea Office with green certification (Image courtesy of JLL Korea)
SEOUL, May 31 (Korea Bizwire) – As corporations strive to respond to environmental crises by implementing decarbonization strategies, interest in eco-friendly offices has surged, according to a report released on May 30 by JLL, a global real estate services firm.
The report reveals that the proportion of Grade A offices in Seoul with green certifications has more than doubled over the past four years, increasing from 21% in 2019 to 45% in 2023.
JLL classifies offices as Grade A if they offer exceptional facilities, with a total floor area of at least 33,000 square meters and a floor plate of at least 1,089 square meters, in addition to prime locations.
“In line with climate neutrality declarations by the government and local authorities, the commercial real estate industry has steadily increased the supply of buildings with environmental certifications,” a JLL representative stated.
“Tenants have begun considering environmentally friendly building operation strategies and related certifications as essential requirements.”
In a JLL survey on environmental, social, and governance (ESG) issues, more than 80% of tenant respondents expressed a desire to transition all their office spaces to green-certified buildings by 2030.
Moreover, over 70% of tenants identified environmentally friendly building designs based on energy circulation techniques as their top priority for carbon reduction.
However, 60% of respondents cited cost concerns regarding sustainable building renovations in the current high-interest rate market environment as a significant challenge.
Addressing this issue, JLL highlighted potential solutions, such as Seoul’s building energy efficiency programs and green-based collaboration structures between tenants and landlords. “Business models like ‘green leases’ that facilitate cooperation between landlords and tenants are gaining attention,” the representative added.
Green leases incorporate clauses for sustainable office operations, including the adoption of alternative energy sources and waste reduction plans, in addition to standard rental terms.
“The Korean real estate market’s interest in sustainability will continue to grow,” said Shim Hye-won, head of the JLL Korea Research Team. “The trend of preferring green-certified offices is expected to persist.”
Lina Jang (linajang@koreabizwire.com)
