Greenery in commercial buildings: Enhancing returns for investors

Abstract

Commercial real estate investment provides a portfolio with low volatility, long-term cash flows. The degree to which investors will pay for trees and greenery in buildings is tied to demonstrable returns produced by occupiers paying more for one building over another. The chapter outlines the growth in Asia Pacific commercial real estate investment, including growth investment in cities in tropical / sub-tropical zones. Building on JLL’s research on the Future of Work, it discusses what factors occupiers of commercial space are considering, given the changing future of work. This leads to implications as to whether occupiers be more willing to pay for greenery in tropical / subtropical cities and, therefore, what steps investors can take to enhance the attractiveness and, therefore, returns of their buildings.