Net-Zero Transition Gains Momentum in US & Canada Real Estate
Commercial real estate companies in the U.S. and Canada are increasingly joining the race to net-zero carbon emissions amid mounting pressure from various stakeholders in the aftermath of the COVID-19 pandemic, industry insiders say. About 40% of carbon emissions globally are attributed to the built environment, and a significant portion of these come from electricity, heating, cooling and maintenance, which are necessary to operate commercial buildings, Christian Beaudoin, Jones Lang LaSalle Inc.'s director of research and strategy for the central U.S., said in an interview with S&P Global Market Intelligence. Drivers for the transition to net-zero include increasing pressure from institutional investors to have a climate action plan and employees of real estate companies pushing management to address ESG issues, he added. Additionally, tenants are increasingly choosing buildings that have sustainability features as well as modern amenities in a "flight to quality," Hameer Vaid and Hunt Holsomback of Alvarez & Marsal Holdings LLC said in a separate interview. Many lenders are also providing more favorable interest rates to sustainability-compliant real estate projects. Despite a growing consensus on the need to decarbonize portfolios, the pace of company adoption differs. "Some are moving faster and are more progressive with their environmental strategies, while others are waiting to see if this really plays out," Beaudoin said.
Tags : INTERNATIONAL commercial real estate U.S. Canada carbon emissions ‘Net-Zero Carbon Climate Action Plan Sustainability-Compliant Real Estate Projects