Sustainability has increasingly become a focal point in the global real estate industry. While some regions have pioneered this movement for years, others have been slower to adapt. However, even traditionally slower regions like Thailand are now embracing sustainable trends due to rising environmental concerns and changing market needs.
One significant trend is the increasing pursuit of green building certifications, such as LEED (Leadership in Energy and Environmental Design), EDGE (Excellence in Design for Greater Efficiencies) and TREES (Thai’s Rating of Energy and Environmental Sustainability). These certifications provide a structured approach to evaluating and improving a building’s environmental performance, including energy and water efficiency, indoor air quality and the use of sustainable materials. Real estate consulting firm, CBRE Thailand, reported that many Thai developers became interested in green building certification after Park Venture Ecoplex achieved LEED Platinum certification in 2012. As of Q2 2024, 35% of existing office buildings launched since 2021 in Bangkok’s CBD have a green building certification.
Ms. Chotika Tungsirisurp, Head of Research and Consulting at CBRE Thailand, commented “While the industry focuses on obtaining building certifications as evidence of achieving ESG standards, several other real estate sectors have long been adopting sustainable practices. As these strategies become standard for many listed and multinational companies, they are setting ambitious goals to reduce greenhouse gas emissions, switch to renewable energy sources and improve waste management practices. Corporate transparency is also on the rise, with many firms publishing detailed sustainability reports and having their claims verified through third-party audits.”
CBRE’s latest Asia Pacific Office Occupier Sentiment Survey, which includes insights from more than 130 corporate real estate executives, revealed that about half of multinational occupiers have set a net-zero target for 2030. This year, many companies are focusing on achieving a greener portfolio, with 64% of survey respondents expressing a strong desire to occupy green-certified office buildings in the next three years. CBRE has seen this trend in Thailand, where numerous multinational companies have already, or are committed to, relocate to green buildings.
In the hospitality industry, operators like Accor, Hilton and IHG have committed to reducing emissions by setting climate-based targets on the path to net zero. Energy consumption is a major concern for many companies, making energy efficiency a key focus in sustainable real estate. Buildings are integrating advanced energy management systems to minimize energy consumption, and some designs are incorporating renewable energy sources, such as solar panels and hydropower, to achieve net-zero energy status.
In another finding from CBRE’s 2023 Asia Pacific Logistics Occupier Survey, half of respondents expressed interest in warehouses with green certification. The same 2023 survey also noted that 70% of the 120 logistics real estate executives surveyed in Asia Pacific are seeking improved access to green energy, underscoring the growing demand for green-powered warehouses. In Thailand, CBRE has observed the use of renewable energy sources, such as solar power and hydropower, within industrial estates. Industrial property owners are progressively adopting rooftop solar photovoltaic systems for on-site clean energy generation. This trend extends beyond the industrial sector, with the retail, hotel and residential sectors also embracing solar panels.
Many logistics operators are currently integrating electric vehicles (EVs) into their fleets, with plans for increased adoption. Notable companies like FedEx and DHL aim to fully transition to EVs by 2030. In Thailand, WHA launched MOBILIX, the country’s first green logistics solution based on the principle of sustainable motion. MOBILIX is a comprehensive platform for managing EV fleets and batteries, also offering EV fleet rental and charging solutions.
Sustainability trends in the real estate industry indicate a commitment from many companies to address environmental challenges. The integration of green building certifications and energy-efficient technologies reflects a significant shift towards environmentally responsible practices. As demand for sustainability rises, the real estate sector is poised to continue its transformation toward a more sustainable future.
In conclusion, the real estate industry is making greater efforts to embrace sustainability trends, with a growing interest in green building certifications. Companies are actively setting ambitious targets to reduce greenhouse gas emissions and increase the use of renewable energy sources.
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