When it comes to transparency in the global real estate markets, limited improvements in many areas outside of the leading markets have resulted in one of the slowest rates of progress in the history of a key report from JLL and LaSalle.
This highlights “growing disparity in transparency around the world,” according to the Global Real Estate Transparency Index (GRETI).
Richard Bloxam, CEO, Capital Markets, JLL, said in prepared remarks that external events such as geopolitical conflict, economic volatility and lingering effects of COVID-19 have had widespread effects on the global real estate market.
Net Zero on Center Stage
Through sustainability, most leading markets are stepping up, the report said.
Jacques Gordon, head of global strategy and research for LaSalle Investment Management said in a release that sustainability is the leading driver of transparency improvements in the survey, a trend that began in 2018.
“Net zero emissions are the current focus for many investors, companies and governments in the most transparent countries around the world, with an increasing number of countries and cities following up on previously announced climate commitments by establishing mandatory energy efficiency and emissions standards for buildings,” Gordon said in prepared remarks.
More widespread adoption of green and healthy building certifications were found, a trend Gordon expects to continue to accelerate “in the years ahead.”
The Drive Toward ESG
Last week, GlobeSt.com reported that regulatory considerations and investor demand for transparency are increasingly important drivers behind Environmental, Social and Governance (ESG) disclosure and reporting frameworks.
And Prologis, focusing on solar generation capacity, carbon neutral construction and net zero energy performance, announced last month that its commitment to achieve net zero emissions across its value chain by 2040 put it 10 years ahead of the target set by the Paris Accord.