CBRE: Sustainability Drives Real Estate Decisions

A majority of companies worldwide have pledged to reach net zero, requiring reductions across all three scopes of emissions.

If a company is using unsustainable buildings, it can be much more difficult to cut Scope 1 emissions, which involve direct emissions from owned or controlled sources such as heating and cooling systems. 

Sustainable buildings are increasingly seen as essential for achieving long-term climate goals, attracting talent and meeting investor expectations.

CBRE’s report on its 2024 Americas Office Occupier Sentiment Survey features insights from 225 corporate real estate executives overseeing portfolios of offices across the US, Canada and Latin America and shows that companies’ decisions are significantly affected by the sustainability features of buildings. 

Many companies are prioritising energy-efficient designs, facilities to support walking or cycling, electric vehicle charging and green building certification. 

Robert Bernard, Chief Sustainability Officer at CBRE, says: "After speaking with clients, energy companies, start-ups, investors, and hundreds of employees globally, it's clear that the complexity of driving down emissions at pace and scale presents real and significant challenges for our industry."

About CBRE

CBRE is the world's largest commercial real estate services firm. 

Headquartered in Texas, it operates in over 500 locations and employs 130,000 people worldwide. 

In 2023, CBRE generated US$32bn in revenue.

“We have reduced emissions from our own operations by 24% since 2019, even though our employee headcount is up 18%. This is a notable marker on the road to achieving net zero carbon emissions by 2040,” says Bob Sulentic, Chair and Chief Executive Officer at CBRE.

“Real estate investors and occupiers are also increasingly tapping into CBRE’s expertise as we help them achieve their own sustainability aspirations.”

CBRE has committed to achieving net zero carbon emissions by 2040 and is dedicated to helping its clients decarbonise.

In 2023, the company was named the third most sustainable US-based company by Barron’s and was recognised by the Human Rights Campaign Foundation as a best place to work for LGBTQ+ equality. 

How does sustainability impact real estate decisions?

Most occupiers, including 57% of all respondents and 86% of large companies, have made public net zero pledges and aim to achieve them by 2030. 

Green building certification plays a significant role in site selection, with more than half of respondents considering the presence or absence of it when making decisions.

Occupiers who have portfolios dominated by Class A or A+ buildings place even higher importance on certification, with 63% using it as a factor when deciding to pay a premium, seek a discount or even reject a building.

Green lease clauses are also growing in importance, with 26% of occupiers indicating this influences their real estate decisions.

The most valued features in these leases include the sharing of energy, water, and waste data between parties, landlord reporting and disclosure of carbon footprint, and the implementation of comprehensive recycling systems.

22% of respondents said if a building does not have facilities that support cycling or walking they would exit from or reject it, with a further 18% saying they would seek a discount.

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