Unlocking Asset Potential: The Impact of Sustainable Office Fit-Out Practices
With over 70 percent of buildings in Hong Kong more than 20 years old, the city faces a significant challenge: Many aged and Grade B office spaces are grappling with high vacancy rates. Even within Grade A office spaces, about 44 percent are over 30 years old, and projections indicate that this figure may rise to 55 percent by 2030. Approximately one-fifth of these buildings could face functional obsolescence by 2035, posing challenges in attracting tenants. Furthermore, capital and rental values of Grade A offices are projected to decline by more than 10 percent by 2026. And the value of poorly maintained office buildings that are more than 30 years old may decline by as much as 20 percent.
Sustainable fit-outs are emerging as a compelling solution, offering a wealth of benefits for both landlords and tenants. For landlords, investing in sustainable upgrades can enhance asset value and attract high quality tenants who prioritize sustainability. These improvements can lead to increased occupancy rates, reduced turnover, and long-term cost savings through lower energy consumption and maintenance expenses. Furthermore, revitalizing aging buildings with sustainable features not only improves their marketability but also contributes positively to urban landscapes, and makes them more appealing to both businesses and the communities they serve.
For tenants, these modernized office environments provide flexible spaces that can adapt to various work styles, enhanced amenities that promote well-being and productivity, and innovative layouts that foster creativity and collaboration. In addition, sustainable fit-outs can significantly reduce move-in, operational, and move-out costs, making them a financially savvy choice. Alarmingly, only about 5 percent of buildings in Hong Kong currently meet the highest standards of sustainability. This gap presents a remarkable opportunity for value creation in the real estate market.
Thank You to Our Knowledge Partner
About the Net Zero Imperative
ULI’s Net Zero Imperative (NZI) Program empowers cities to take bold, practical steps toward climate action by meaningfully engaging the real estate sector. Recognizing that the urban built environment accounts for a significant share of global carbon emissions, the program works at the critical intersection of real estate, public policy, and community development to drive measurable change.
ULI Hong Kong thanks all of the presenters and participants for their contributions:
Presenters
Helen Amos, Head of Sustainability Consulting, JLL
Andrew Macpherson Executive Director, Head of Asset Development, JLL APAC
Beatrix Du Toit, Client Design Director, JLL Design, APAC
Paul Yien, Head of Landlord Representation, JLL
Participants
Daniele Albanese, Cundall
Paul Bennett, Experium
Alessandro Bisagni, BEE Incorporations
Mark Cameron, Nuveen
Daisy Chan, Nan Fung Group
Jessica Chan, JLL
Nancy Chen, Heitman
Winnie Cheung, Heitman
Philip Clarke, The Oval Partnership
Fiz Field, EY
Jonathan Fong, Hip Shing Fong
Charlie Haase, ANREV
Miu Ho, Sun Hung Kai
Patrick Ho, Swire Properties
Yongki Hong, Swire Properties
Elina Jiang, Sustaina
Taurus Kwan, AEW
Amie Lai, Great Eagle
Olivia Lai, Swire Properties
Dustin Lam, Robert Bird Group
Cheryl Law, JSM
Edward Law, Yu Tai Hing
Sharon Law, Link Asset Management
April Lee, Blackrock
May Lee, ULI Asia Pacific
Charlotte Leung, Henderson Lan
Phoebe Leung, Swire Properties
Emily Li, Nan Fung Group
Katherine Lo, Link Asset Management
Maple Ma, Nan Fung Group
Bede Ng, SOCAM
Stephanie Ng, ULI Asia Pacific
Pritya Pavina, HSBC
James Pierce, The Oval Partnership
Deric Probst-Wallace, DeutscheBank
Andy Russell, JEB
Joe Tang, Cundall
Timothy Ting, Nan Fung Group
Sharon Tsang, Swire Properties
Mick Tse, Hongkong Land
Eric Wong, Saint-Gobain
Michael Wong, Sun Hung Kai
Peter Wong, Hip Shing Fong
Douglas Wu, Fairland Holdings
Carman Yeung, Henderson Land
Ray Zee, Chinachem
Jocelyn Zhu, OCBC
Get involved
Please stay tuned for more information and contact [email protected] if you have any enquiries.