US commercial stock most in need of redevelopment
Some 44% of office buildings in the US are seen as outdated and in need of investment, analysis from commercial real estate firm JLL has found.
This compares to 34% in Europe, as some countries are ahead of others in terms of decarbonising commercial stock.
New York, Washington DC, Paris, Chicago and London are particularly behind, where JLL estimated you’d need to spend between $242 to $320 billion to bring them up to date.
Cynthia Kantor, CEO, project & development services, at JLL, said: “The commercial real estate landscape is at a turning point as property owners and cities look to establish long-term viability of existing buildings and districts, in the face of evolving experiential and spatial preferences, increasing regulatory pressures, climate risk and changes in real estate demand.
“By proactively assessing and addressing outdated and at-risk buildings, owners can unlock significant value, create a more sustainable, resilient built environment and drive future returns.”
JLL said public authorities that focus on regeneration of specific major building are making a big difference, given that it attracts workers back to office-heavy business districts, and serves to revitalise neighbourhoods for visitors and residents.
Phil Ryan, research director at JLL, added: “The full potential of existing assets, both those nearing the end and earlier in their lifecycle, can only be realized through collaboration between stakeholders and by considering how various levels of obsolescence interact
“Owners and cities should assess how their portfolios holistically fit into their respective built environments and how a variety of factors contribute to their ability to respond to changing locational preferences and new sustainability and development regulations to create future value.” More
