MarketDynamics Q32024
GreenBuildingsinJapan
• LEEDcertificationsacquiredin1Q-3Q2024exceed full-year2023.
• WELLcertificationsawarded tothreeofficesinTokyo CBD.
• TheJapaneseversion ofSustainabilityMarketDynamics featuresrealestateresilience assessment.
SixacquiredLEEDcertification in3Q24.Noprojects were awarded Platinumcertification. In1Q-3Q2024,33certifications were acquired, exceeding the30forfull-year2023.Thetotalnumber of certified projects since2009hasreached 287,anincreaseof2.1%qo-q.
Forty-three projects acquired CASBEE-BDcertification in3Q24in varioussectors,including offices,retail,logisticsfacilities,hotels andresidentialproperties. ThetotalnumberofCASBEE-BDcertified projects increased by7.0%q-o-q to461.
CASBEE-REcertification wasacquiredby129projects in3Q24,a decrease q-o-q andy-o-y. ThetotalnumberofCASBEE-RE-certified projects reached1,948,anincreaseof6.1%q-o-q.
Threeprojects acquired WELLcertificationin3Q24.OnePlatinumawarded project wasarealestateofficeinTokyo CBD(WELLv2: projects OfficeSpaces). ThetotalnumberofWELL-certifiedprojects hasreached 58,anincreaseof5.5%q-o-q.
Noprojects acquired Fitwelcertificationin3Q24.Thetotalnumber ofFitwel-certified projects remained atfive.Although Fitwelisstill relativelyunknown inJapan, therewere1,773validcertificationsin 35countriesaround theworld asofend-3Q23, slightlymore than theWELLcertifications.
Ten projects acquired CASBEE-WOcertification in3Q24,including one eachinTokyo CBD,Osaka-shiandFukuoka-shi.Thetotal numberofCASBEE-WO-certified projects hasreached 170,an increaseof6.3%q-o-q.
Specialfeature:Realestateresilienceassessment
Investigating thedisasterriskofrealestateisbecoming commonplace, andinvestors areusingresilienceassessment services,including MunichREandJupiterIntelligence, thatcan easilygetthephysicalriskofclimatechange basedonanaddress. However, inJapan,whereearthquakesandfloodsoften occur, therearehighexpectations forthedevelopment of ResReal certification, whichevaluatestheresilienceofeachproperty by considering disastercountermeasures inaddition togeographical conditions.
Fundamentals
Green-certified projects(average q-o-q) +5.1%
Wellness-certified projects(average q-o-q) +3.9%
Note:LEED,WELLandFitwelrefertoallratings.CASBEE-BD,CASBEE-REand CASBEEWOrefertoB+andabove.
Source:JLL,USGBC,IBECs,IWBI,Fitwel
Historicalvalidgreencertificationbycertifiedyear
Source:JLL,USGBC,IBECs
JapanSustainability MarketDynamics Q32024
JonesLangLaSalleK.K.
Tokyo Headquarters
KioiTower, Tokyo Garden Terrace Kioicho
1-3Kioi-cho Chiyoda-ku, Tokyo 102-0094
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Formoreinformation,pleasecontact
JinMatsumoto
HeadofESS
Energy andSustainabilityServices
Japan
jin.matsumoto@jll.com
COPYRIGHT ©JONESLANGLASALLEIP,INC.2024
Kansai
Nippon Life
Yodoyabashi Building
3-5-29KitahamaChuo-ku, Osaka541-0041
+81676628400
Fukuoka
DaihakataBldg.
2-20-1Hakata-ekimae, Hakata-ku,Fukuoka-shi
Fukuoka812-0011
+81922336801
Nagoya
JPTowerNagoya
1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
MakiWatanabe Director
Energy andSustainabilityServices
Japan
maki.watanabe@jll.com
Takeshi
Akagi HeadofResearch Research
Japan
takeshi.akagi@jll.com
TomomiKemmochi Manager Research
Japan
tomomi.kemmochi@jll.com
Thisreport hasbeenprepared solelyforinformation purposesanddoesnotnecessarilypurport tobeacomplete analysisofthetopics discussed,whichareinherently unpredictable. Ithasbeen basedonsourceswebelievetobereliable,butwehavenotindependently verifiedthose sources andwedonot guaranteethattheinformation inthe report isaccurateorcomplete. Anyviewsexpressed inthereport reflect ourjudgment atthisdateandaresubjecttochange withoutnotice. Statements thatareforward-looking involve known andunknown risksanduncertaintiesthatmaycausefuturerealitiestobemateriallydifferent fromthoseimplied bysuchforward-looking statements.Advice wegive toclients inparticularsituationsmaydifferfromtheviewsexpressed inthisreport. Noinvestment orotherbusinessdecisions shouldbemadebasedsolelyon theviewsexpressed in thisreport.