Decarbonising Real Estate: JLL’s Sustainable Energy Vision

Global real estate agency JLL recently analysed the energy performance of 46,000 buildings across 14 global cities, figuring out three areas that can be majorly improved on.
With energy prices on the rise and owners cutting costs when and where they can, corporate commitments and regulatory pressures leave little to no room for building owners to look past the global call for reducing emissions.
With comprehensive planning and action, investing in decarbonisation can become a strategic economic opportunity.
JLL’s data compiling
After obtaining the data from over 40,000 buildings across 11 different sectors, it's obvious where improvement is needed, in terms of carbon emissions but also cost.
The data was compiled from local energy benchmarking and reporting requirements.
When combined, these buildings represent 5.9 billion square feet of commercial space along with a total of 120,700 GWH of annual energy consumption – enough to power 11.5 million homes for a year.
The data reveals that 65% of offices and 75% of multifamily buildings face stranding risk by 2030 if action isn't taken to improve building performance.
Richard Batten, Global Chief Sustainability Officer at JLL explains: “As real estate is responsible for 40% of the world’s carbon emissions, JLL is dedicated to reducing our own emissions and also to partner with our clients to help them do the same.
“Having committed to a science-based target, we encourage all in the real estate sector to join this commitment to create a decarbonised built environment; there is an urgency for us all to work together to achieve this important goal.”
Successful decarbonisation of building operations means the prioritisation of three key action areas:
- Optimising operations through energy efficiency measures
- Electrifying operations
- Employing dynamic clean energy strategies.
JLL’s energy action
The energy transition requires a shift in mindset, viewing energy efficiency as a fundamental clean energy source and cost-saving strategy.
Improving building efficiency is the fastest way to lower operating expenses and emissions, serving as a critical step in this transition.
Berkeley Lab estimates US building efficiency could save over US$100bn (nearly £81.7bn) in power sector costs by reducing the need for carbon-free energy investments.
Light to medium energy retrofits can yield 10-40% energy savings depending on property type, equating to US$2.9–$11.4bn (£2.37-£9.3bn) in annual savings or US$0.49–$1.94 (£0.40-£1.58) per square foot.
Energy efficiency also helps mitigate energy price volatility and eases pressure on aging grids.
According to the International Energy Agency (IEA), the lack of energy efficiency is the second-largest contributor to global CO₂ reduction, though its impact varies with grid cleanliness.
Heating and cooling systems dominate building energy use, with heating, ventilation and air conditioning (HVAC) accounting for 40% in typical offices.
Fortunately, efficient technologies and measures are available today – often enhancing occupant comfort while cutting costs and emissions.
For example, JLL’s Hank uses machine learning to optimise HVAC systems, reducing energy consumption by 20% and improving indoor air quality, making buildings more sustainable, cost-effective and attractive to tenants.
JLL’s electrical efficiency
Being JLL’s second area of action, electricity improvement is essential for a green future.
Electric heat pumps are a key solution, now cost-competitive in many markets, offering 1.5-4.5 times the efficiency of electric resistance heat and gas boilers – these often require more space.
In nine markets studied, only Washington, D.C. (51%) and Seattle (44%) have substantial shares of fully electrified buildings, while others remain under 30%.
Sadly, many electrification efforts rely on inefficient electric resistance heating and fossil fuel-reliant grids limit the emissions benefits.
Jurisdictions are increasingly mandating all-electric new construction, with Berkeley, California pioneering this in 2019, followed by about 100 cities, including New York and Los Angeles.
Electrification eliminates Scope 1 emissions, a critical step for meeting climate targets.
A clean energy economy
As clean energy becomes more widespread, it is now the most cost-effective fuel source, the IEA states that solar panels generate the cheapest electricity in history.
In the US, renewables lowered wholesale electricity costs in Texas by US$31.5bn (£25.7bn) from 2010 to 2022.
Seattle, benefiting from carbon-free hydroelectric power, boasts 45% cheaper electricity than New York City, where the grid is 62% dirtier.
Energy-intensive properties like data centers and warehouses can leverage onsite solar to reduce costs and emissions.
For example, solar installations on 450,000 U.S. warehouses could power 19.4 million households annually –smart technologies that align demand with supply are critical for cost savings and efficiency.
Building Performance Standards (BPS) are advancing net-zero goals by setting limits on energy use or emissions, with penalties for noncompliance.
Cities like New York, Boston and Seattle have adopted BPS, targeting carbon intensity or energy use intensity.
NYC’s 2030 limits may impose penalties of $0.29–$2.00 (£0.24-£1.63) per square foot for noncompliant offices – nearly 66% of buildings in a recent study would face fines under such standards.
By acting early and strategically, stakeholders can align with net zero goals while gaining economic and market benefits.
Christian Ulbrich, JLL CEO, comments: “By committing to achieve net zero carbon emissions across our global office network by 2030, JLL is again demonstrating our determination to play a full part in mitigating climate change.
“Through our own ambitious sustainability targets, and through the advice and services we provide to our clients, we will work to fulfil our corporate purpose of shaping the future of real estate for a better world.”
JLL’s comprehensive analysis highlights the urgent need for the real estate sector to prioritize decarbonisation as both a climate imperative and a strategic economic opportunity.
With the right planning, investments, and adoption of advanced technologies, the transition to a low-carbon future not only becomes achievable but also economically advantageous.
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