Industrial buildings: Adapt or fail

JLL’s latest research report – A Sustainable Future – Industrial in New Zealand – says for many businesses, the extent to which they and their corporate real estate partners invest in features which improve environmental, social and governance (ESG) standards is becoming an increasingly important consideration.

Tenants are likely to increasingly demand specific sustainability metrics are met under new lease agreements.

This dynamic is already playing out in the development and acquisition space. Here there is a strong market for larger sites with older improvements which are primed for demolition and redevelopment to modern standards, says JLL’s report.

This is particularly common in the New Zealand market, given that a substantial proportion of industrial stock is of secondary quality and no longer fit-for-purpose in a modern context.