Net zero buildings will command higher occupancy, rents: Colliers Singapore

Net zero buildings often lead to significant long-term savings.

Net zero buildings are expected to command higher occupancy and rents with the increasing awareness among investors and tenants about sustainability, Colliers Singapore said. 

This will provide higher financial performance and enhance the value of the asset in the long run. 

In its report, The race to Net Zero - for commercial buildings in Singapore, Colliers noted that net zero buildings offer better indoor air quality and thermal comfort.

“As they offer a more productive environment and can create long-term savings through reduced energy usage, Net Zero buildings will be increasingly preferred, leading to higher occupancy rates, asset values, and tenant satisfaction," Bastiaan van Beijsterveldt, Managing Director at Colliers Singapore, said.

Although transitioning to net zero might involve some upfront capital expenditure, Colliers said it often leads to significant long-term savings through reduced energy costs. This is particularly critical amidst volatile global fossil fuel prices. 

Moreover, Colliers said that to develop a net zero strategy, companies must establish clear targets, milestones, and plans for upgrading assets to reduce energy consumption. 

Companies must also track emissions and progress and utilise technologies such as simulation software to optimise building design and energy usage.

Additionally, they must also invest in energy-efficient systems and equipment and use on-site and off-site renewable energy solutions.