Sustainability Goals Are Reshaping Commercial Real Estate: Here’s What You Need to Know

From rising demand for energy-efficient buildings to ESG-aligned lease terms, sustainability is no longer optional—it’s strategic. Here’s how these shifts are impacting the office market and what businesses should consider next. 

1. Green Space Is Getting Competitive 

More organizations are prioritizing low-carbon buildings—but supply is limited. According to JLL research, only 34% of future demand for low-carbon workspace will be met in the next several years across 20 major global office markets.   

What this means for your organization: 

• There’s growing urgency to secure space in buildings that align with ESG standards. 

• Early planning can increase leverage in lease negotiations and help avoid costlier retrofits later.  

2. ESG Goals Are Influencing Leasing Strategy 

Organizations are now assessing how potential leases align with their internal sustainability goals, support reporting and compliance requirements (such as emissions tracking and Scope 2 data), and impact total occupancy costs when factoring in energy efficiency. 

According to CBRE’s Office Occupier Sentiment Survey 2024, sustainable building features ranked as the #1 most favored feature among occupiers in Europe—surpassing even parking, building amenities, and flexible office space options. 35% of occupiers reported they would exit or not consider a building if there was no green building certification.  

Green leases—standard leases with added clauses addressing sustainability objectives—are becoming more prevalent. These agreements facilitate cost-sharing for sustainability upgrades between landlords and tenants, aligning both parties’ ESG commitments.   

But while demand is rising, CBRE’s Global ESG Survey also highlights an underlying tension: not all stakeholders are aligned. In particular, there’s a disconnect between occupiers, landlords, and investors when it comes to ESG targets and implementation timelines. Some organizations are aggressively pursuing net-zero goals, while others are still navigating what ESG even means operationally. 

3. Certifications May Influence Future Value—But They’re Not Everything 

Green building certifications like LEED, BREEAM, and ENERGY STAR can enhance a property’s marketability and may contribute to higher rents and occupancy rates. For instance, LEED-certified buildings have been shown to command rent premiums of up to 20% compared to non-certified buildings.   

However, certification alone doesn’t guarantee superior performance. Some buildings achieve high sustainability standards through significant performance upgrades without pursuing formal certification, while others may possess outdated certifications that no longer reflect current efficiency levels. 

Our recommendation:  

Use certifications as an initial indicator of a building’s sustainability, but conduct thorough due diligence to validate actual performance. Inquire about recent system upgrades, energy consumption data, and the implementation of ESG-focused strategies such as electrification or renewable energy sourcing. This comprehensive approach ensures alignment with your organization’s sustainability goals and operational requirements. 

4. The Cost of Delay Is Rising 

Occupying a less efficient building can lead to higher utility bills, decreased tenant satisfaction, and potential reputational risks—especially for organizations with ESG commitments. 

We recommend you evaluate: 

• Operating Expenses and Utility Trends: According to the US Office of Revenue Analysis, LEED-certified buildings have been shown to have operating expenses that are, on average, $2.53 per square foot (7.43%) lower than those of non-certified buildings.   

• HVAC Modernization Timelines: Upgrading to energy-efficient HVAC systems can significantly reduce energy consumption and associated costs. 

• Flexibility for Future Sustainability Upgrades: Buildings designed with adaptability in mind can more readily accommodate future sustainability initiatives, such as the integration of renewable energy sources. 

  
  

5. Sustainability Is Becoming a Leasing Differentiator 

In today’s competitive real estate markets, sustainability has emerged as a key differentiator in leasing decisions. Businesses are increasingly prioritizing energy-efficient buildings and wellness-focused designs to align their real estate choices with long-term operational goals and cultural values. 

Key Factors Influencing Leasing Decisions: 

• Energy Efficiency: Sustainable buildings often lead to lower operational costs due to reduced energy consumption, making them financially attractive to tenants.   

• Wellness-Centric Design: Features such as enhanced air quality, natural lighting, and access to green spaces contribute to occupant well-being, resulting in higher tenant satisfaction and retention rates.   

  
  

By choosing properties that embody sustainable attributes, companies not only fulfill their environmental and social commitments but also create healthier, more productive work environments that resonate with their organizational culture.