2017 CHINA GREEN BUILDING REPORT

F R O M G R E E N TO H E A LT H
CBRE RESEARCH
2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

06
01
P A R T O N E
03
Development of the LEED certification in China
05

Foreword
07

10
P A R T T W O 09
Key drivers of LEED certification in China - A case study of LEED prime offices 11

13

20
P A R T T H R E E 15

“Green finance” to possibly become a new driver of growth for green buildings 17

19

21

24
P A R T F O U R
23
From Green to Healthy - New development trends of green buildings
25

27

29

31

The development of green buildings in Green Building Development,

China has undergone major advance-
ments in 2017. Early in the year, the
Architectural Society of China (ASC)
published the “Assessment Standard for
Healthy Building”, a guideline with
strong emphasis on the concepts of
“green and health”, “architecture and
people”; In March, the Ministry of
Housing and Urban-Rural Development
(MOHURD) had released “ China’s
13th Five-Year Plan of Green Building
Development”; In June, the People’s
Bank of China along with seven other
administrative departments had
published its “Masterplan for Pilot
Zones for Green Finance Reform and
Innovations” which had established new
pilot zones in the provinces of
Guangdong, Jiangxi, Zhejiang,
China's 13th Five Year Plan of Green
Building Development (2020) 2016-2020 will be a period of
acceleration of “quantity and quality”
Source: MOHURD, CBRE Research Q3 2017
for green buildings in China. The plan
September, 2016
sets out the following goals for 2020: At
least 50% of all newly constructed
2020 80%
buildings should be green building
certified; Over 80% of certified projects
should fulfill the two-star requirements;
At least 30% should receive certification
for operations. All three indicators have
vastly improved since September 2016.
59% By 2020, it is estimated that new supply
of green building space will reach 2
billion sqm.
50%
Promotion and adoption of the China
Green Building Certification has been
mostly policy-driven whereas the LEED
certification is a much concise indicator

Obtain operation label projects as % of total green space

Guizhou, and Xinjiang.1 of actual demand due to its market

Above 2-star rated projects as % of total green space

independence and third-party status. As
Based on available public records, by 30% an increasing number of high quality

Green space as % of total new construction

the end of September 2016, China had commercial property projects in China
accumulated over 520 million sqm of have adopted the LEED certification, the
green building space at the national 44% environmental and economic advantag-
standard in 336 cities. CBRE estimates es of this accreditation have become
that, with the inclusion of LEED2 certified more apparent and noticeable. Such
projects, China currently has over 600 positive feedback from the market has
million sqm of accredited green led to further adoption, thus further
6%
building space. understanding of relevant market trends
will be the major focus of this report.
According to the 13th Five-Year Plan of

1 Guangzhou in Guangdong Province, Ganjiang New District in Jiangxi Province, Guian New District in Guizhou Province, Huzhou and Quzhou in Zhejiang Province,
Hami, Changji and Kelamayi in Xingjiang Uygur Autonomous Region
2 Leadership in Energy and Environment Design
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H
LEED Office in China

China’s 13th Five-Year Plan of Green Building Beijing Rental Premium Improvement in CBRE Headquarters – WELL Certified

25
2020
Occupancy
Development: To build 2 bln sq.m. New Green Los Angeles, California
2015
Total GFA 2.2m
Space during 2016-2020 Rents 388 Workplace meet WELL, employees feedback:
Occupancy rate 93%

50 80 30 10 1.5 3.5
92
Shanghai Said the new space has
Total GFA 2.65m created a positive effect on
LEED VS General
Rents 342 their health and wellbeing
Occupancy rate 87% LEED Platinum VS Certification below LEED Platinum

94
Shenzhen Said that the new space
Total GFA 1.03m Beijing has a positive impact on
Rents 299 their business performance

59
Occupancy rate 90%

20
83
Guangzhou
Feel more productive
Total GFA 0.78m
6 Rents
Occupancy rate
171
92% Shanghai

Chengdu
100
Green space as % of Above 2-star rated projects Obtain operation label projects
total new construction as % of total Green Space as % of total Green space Chengdu Said that clients are interested
Total GFA 1.13m in their new way of working
The Rapid Development of
2014 2017 Rents 87
LEED Building in China
48 M
93
Occupancy rate 70%
Notes: GFA: sq.m., Rent: RMB/sqm/month;
Said that they are able to
54 23 Guangzhou more easily collaborate
22 Shenzhen
with others
44 25 M

16 14 WELL certificated and pre-certificate building space exceeds 1 mln sq.m. in China, From Green to Health
ranking 1st globally
China Assessment
WELLBuilding
Standard for
US China Australia France UK Standard
Healthy Building

2.65 2.63 1.27 1.09 0.49

No. of city entry LEED certified spaces LEED penetration in LEED Platinum proportion in
million
sq.m.
million
sq.m.
million
sq.m.
million
sq.m.
million
sq.m. 29 Air 24 Air
Grade A office stock certified office space

Mar 2015, WELL Building Standard introduced in China

8 Water 16 Water

Oct 2016, “Healthy China 2030 Blueprint” announced

12 Comfort 22 Comfort

Jan 2017, China issued “Green Building Standard”

8 Fitness 10 Fitness

Mar 2017, 1st batch of certified China Green Building awarded

Certified Pre-certificate Registered
15 Nutrition 16 Humanities

Source: CBRE Research, Q3 2017

11 Light 12 Service

CBRE GLOBAL RESEARCH | This infographic was prepared by CBRE China Research Team which forms part of CBRE Global Research - a network of preeminent researchers who collaborate to provide real estate market research and econometric forecasting to real
estate. © CBRE Ltd. 2017 Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your
responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
17 Mind
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02
PART ONE 01

04 03

06 05

08 07

10 09

12 11

14 Since China’s first LEED certification of the Agenda 21 13

Development of the
16 project in 2005, the LEED certification has maintained rapid 15
growth and development in the Chinese market. During
18 17
2005-2016, the total area of LEED certified projects in China
20 19
had increased at a CAGR of 77%. By August 2017, over 48
22 million sqm of projects across 54 cities had been LEED 21

certified. As of 2010, China has sustained its position as the

LEED certification in China

24 23

26 largest LEED market outside of the US, accounting for over 25

28
9% of the global market and 32% of international market 27
(excluding US). 3
30 29

LEED certified space in China (2005-2007)
Source: USGBC, CBRE Research Q3 2017
5,000
31
LEED certification in China entered a period of acceleration
in 2015; over 8 million sqm had been certified during the
two years of 2015 and 2016, estimations also show that in
2017 newly certified projects will account for more than 10

10,000 sq.m.
million sqm. The Chinese market has displayed three major
trends in terms of LEED certification, them being:

4,000
01 Increasing construction of commercial
properties has driven LEED certification

The Chinese government provides subsidies to projects which

meet the locally issued Three-star Green Building Label which
has led to numerous government buildings and amenities to
be designed and commissioned towards these specifications.
This has naturally led to LEED being focused towards
3,000 commercial properties, and over the years its adoption has
progressed rapidly. As of August 2017, over 80% of LEED
certified space in China was for either offices or retail, an
increase of roughly 6% since 2014.

Rapid increase of LEED commercial space has been highly

2,000 correlated to the influx of new supply in first and second tier
cities. CBRE data shows that during the period of
2015-20174, over 17 million sqm of new commercial supply
in 17 major Chinese cities5 will have been introduced to the
market, this figure is 1.6 times greater than new supply over
the 2010-2014 period. Highly competitive market conditions
along with an increased sense of corporate responsibility has
1,000
led to the LEED certification becoming a competitive
differentiator to attract tenants.

3 Interior Design and Construction are not included in LEED Certifications

in this report
0 4 It is a predication for 2017 result
5 17 major cities including Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin,
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Shenyang, Dalian, Qingdao, Hangzhou, Ningbo, Nanjing, Suzhou, Wuxi,
Chengdu, Chongqing, Wuhan and Changsha
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Rankings of LEED registered (not yet China top 20 LEED cities

certified) cities in China (Statistics on (2017 VS 2014)
cities with at least 100,000 sq.m. Source: USGBC, CBRE Research Q3 2017
certified space)
Source: USGBC, CBRE Research Q3 2017 City 2017 LEED certified Cumulative growth 2017 2014 Changes in
space (10,000 sqm) since 2014 ranking ranking ranking
10,000 sq.m.
0 100 200 300 400 500 600 700 800 900 1,000
Beijing
1,003 58% 1 1 --
02
02 Beijing

Shanghai Shanghai
834 118% 2 2 -- 01

04 03
Over 10% of existing Shenzhen
06

08
projects have achieved the
LEED certification, however Wuhan
Chongqing
412 10% 3 3 --
05

07

10 09
this still trails the global
12
average
Guangzhou Shenzhen
264 225% 4 9 5 11

14 Chengdu 13

16

18 Since 2015, the total amount of LEED Suzhou

Wuhan
250 29% 5 4 -1 15

17
certified commercial space in China
20 19

22
had increased by 135%, reaching 5.4
million sqm and maintaining its position
Wuxi
Guangzhou
231 105% 6 5 -1 21
Changsha
24 as the largest LEED certification market 23

26 outside of the US; the proportion of

existing projects which have become
Qingdao
Chengdu
208 131% 7 6 -1 25

28 27
certified has gone from 9% to 11%. In
172 196% 8 11
Ningbo
30
comparison to newly constructed
Hangzhou
3 29

31
projects, existing projects which receive Shenyang

03
the LEED certification are stronger
exemplifications of the certification’s
Jinan Tianjin
172 111% 9 8 -1
benefits of achieving higher rent levels,
Haikou
lower energy consumption, lower
vacancy rates, and an overall improved First tier cities continue to LEED certified cities in China can also be Tianjin
Suzhou
171 108% 10 7 -3
environment for tenants. lead in LEED certified space, regarded as strong supporting evidence

However, this proportion is still relatively

however, third tier cities are for this view. Beijing, Shanghai, and
Chongqing continue to lead the nation,
Dongguan Nanjing
124 69% 11 10 -1
trending
low by international standards which is whereas Beijing has become the first Quanzhou

roughly 35%. Amongst the 20

countries with the most LEED certified
Chinese city to accumulate more than 10
million sqm. Hangzhou is the only new
Hefei
Shenyang
106 87% 12 12 --
As of August 2017, the total amount of
space, the top three countries with the addition to the top 10 list in 2017, and
highest proportion of existing projects
are India (68%), Sweden (67%), and the
LEED certified space in Beijing,
Shanghai, Guangzhou, and Shenzhen
now ranks 8th which is 3 spots higher
than its previous position in 2014.
Zhengzhou
Wuxi
84 143% 13 13 --
had reached 23 million sqm, account- Chongqing
US (41%); China (11%) ranking 12th on Shenzhen has displayed the most growth
the list.
ing for 51%6 of all total certified area in
China, a 1% increase from 2014. It
in terms of both rankings and overall Xiamen
Nanchang
66 2908% 14 33 19
certified space. Nanchang, Hefei, and
should be noted that since 2014, over
50 212% 15 16
There is currently over tens of trillions of
1
Dalian have displayed the fastest growth Nanchang
10 new cities have been added to Zhengzhou
sqm of existing commercial property amongst the bottom half of the list,
LEED’s footprint in China, which now Zhuhai
supply in China and this figure striving to make their first appearances
totals 54 cities. These cities include:
continuously grows at a rapid rate
which reflects large opportunities for
Dongguan (22)7, Huizhou (30), Sanya
(32), Zhongshan (33), Shaoxin (36),
on the top 20 list.
Hangzhou Guiyang
45 239% 16 17 1
greening the existing stock. However, In addition to this, our data shows that
Zhuhai (42), Changchun (43), Ordos Foshan
this could be a relatively slow process
as according to survey results published
(50), Luoyang (52), and Xuzhou (54). In
registered area (not yet certified) for
LEED certification since 2015 has Nanjing
Foshan
43 106% 17 14 -3
addition to this, the concentration of
in the “ World Green Buildings Trends reached 37 million sqm in over 58
certified space in the top ten cities has
2016”, only 19% of landlords in China
have expressed plans for implementing
decreased from 87% to 81%. These
cities.8 This clearly indicates the LEED
certification will continue to develop
Changchun Dalian
41 496% 18 23 5
figures are clear indications that the Xi’an
green building standards to their rapidly over the next three years. Cities
existing projects, which is much lower
LEED certification is gradually becoming
adopted and popularized across China.
which have the most registered area are
Guiyang
Hefei
40 1289% 19 31 12
than the global average of 37%, and Beijing, Shanghai, Shenzhen, Wuhan,
ranking last amongst the 13 surveyed Guangzhou, and Chengdu.
markets.
The change in rankings of the top 20 Nanning
Xiamen
29 74% 20 15 -5
6 Certified, but undisclosed projects are not included in this statistics
7 Number in brackets refers to the city ranking by LEED space in 54 cities
8 Undisclosed and Confidential projects are not included in this statistics
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02
PART TWO 01

04 03

06 05

08 07

10 09

12 11

14 13

Key drivers of LEED

16 15
The growth of LEED certified office space
18 17
(2014 - June 2017)
20 Source: USGBC, CBRE Research Q3 2017
19

22 21
656%
24 23

certification in China
26 25
Office buildings are the main property type seeking LEED
28 27
certification in China. According to CBRE’s prime office data,
30 as of 1H 2017, a total of 148 LEED certified projects in 17 29

major cities had accumulated more than 10 million sqm. Of 31

which the top four cities (Shanghai, Beijing, Chengdu, and

A case study of LEED prime offices

Shenzhen) had each averaged more than 1 million sqm.
Data over the 2014-1H 2017 period shows that cities which
showed the most increase in LEED certified office space were
Shenyang, Hangzhou, and Wuxi respectively.
222%
160% 200%
127% Part two of this report will thus use the case studies of LEED
99%
78% certified office buildings in China to further explore and
analyze the key drivers of development in China’s green
100%
77% 23% 0% 0% 0% 0% building market.
59%
17%

Guangzhou

Chongqing
The importance of a high-quality work

Hangzhou

Changsha
Shenyang
Shenzhen
Shanghai

Chengdu

Qingdao
Nanjing

Ningbo
Suzhou
Wuhan
Beijing

Tianjin
Wuxi
environment and talent strategy has driven
0 demands for green office space

Speculation in the local market often regards the green

building initiative as a marketing tool, however, we believe
that market recognition from end users is the only path for
100 ongoing promotion and sustainable development.

In 2016, CBRE issued its first questionnaire regarding this

topic amongst domestic enterprises, and discovered that over
76% of the surveyed were already located in or had plans on
moving into a green office building. The three main reasons
200
being corporate image, corporate responsibility, and overall
cost savings. This clearly shows that the domestic enterprise
demand for green buildings is both market driven and cost
related. Roughly 7% of the domestic enterprises surveyed
10,000 sq.m.

have also expressed that a partial reason for considering

300 relocation to green offices is to attract talent, which also
shows that domestic enterprises are gradually recognizing
City ranking by LEED certified office space ( June 2017)
and adopting similar values to that of MNCs.
Source: USGBC, CBRE Research Q3 2017
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Most Enviornmental Reasons for Building Green (% of Respondents: China Vs Global) Statistics on LEED office by major developers
Source: MOHURD, CBRE Research Q3 2017 Source: USGBC, CBRE Research Q3 2017; Statistics on cities cover by CBRE Research, and certified office space , but undisclosed
projects are not included

Developer LEED certified office LEED certified offices

70% China Global Average
as % of total office stock
66% space (sq.m.)
Domestic developers
60% The Wharf 695,148 58% displaying an increased
adoption of the green
50% 49% Shui On 648,075 69% building initiative
49% 42%
02 40% 37%
SOHO China 553,996 93% 01
In the early stages of the Chinese
04 03

06 30%
31% Kerry 390,023 61% market, the LEED certification was only
05
24% adopted and promoted by Hong Kong
08
20% 18%
Excellence Group 389,000 92% developers and foreign enterprises from 07
24%
10 relatively mature economies. However, 09

12
17% Sino-Ocean Land 348,158 54% as the concepts of green and sustain- 11
10%
ability have become more common-
14 Henderson Land 347,716 66% place, an increasing number of local
13

16 0% 15

18
Sun Hung Kai Properties 330,805 55% developers have begun to acquire the
17
Reduce Energy Protect Natural Reduce Water Lower Greenhouse Improve Indoor standard for their new projects.
20 Consumption Resources Consumption Gas Emissions Air Quality Pingan 247,054 78% According to CBRE data, this trend grew 19

22 21

24 23

26
rapidly as of 2013, and now accounts 25
for roughly 62% of all newly built prime A comparison of developer nationality LEED certified offices as % of Premium
28 27
office buildings; SOHO China, Source: USGBC, CBRE Research Q3 2017; Statistics on cities Grade A office stock
cover by CBRE Research, and certified office space , but
30 Source: USGBC, CBRE Research Q3 2017 29
2016年10月后全面施行的LEED Excellence Group, Sino Ocean Group, undisclosed projects are not included

Ping An, etc. have all become major 31

V4相较于前一版本认证标准的 100%
developers of green office buildings.
调整也体现出更多对室内环境的 Wuxi 37%
Air quality and PM2.5 have become 80% Domestic
major public concerns and are also 关注。在LEED V4认证标准中，
Increasing adoption of the
major drivers of growth for green 室内环境类目所分配的分值由此 LEED standard has led to
60% Beijing 36%
buildings/offices in China. According to 前的15分增加至16分，占总分 40%
market segmentation
“World Green Building Trends 2016”
的权重增加1.1个百分点至 Foreign
Shanghai 31%
when asked why they believe green 20%
buildings should be promoted, more 14.7%。此外，LEED V4中室内 LEED certification for prime office Chengdu 31%
buildings has been gaining traction ever 0%
than 42% of Chinese interviewees listed 环境类目下的先决条件也更为严 2010 2011 2012 2013 2014 2015 2016 2017
since its introduction to the Chinese
“improved air quality” which is much
苛 – 最低室内空气质量要求的参 Shenzhen 24%
higher than the global average of 17%; market, with a market adoption rate of
of the 13 countries which were 照标准由ASHARE 62.1-2007升 roughly 1% in 2008 to its current rate of LEED certified offices account for 1/4 Hangzhou 23%
interviewed, China selected this answer 级为ASHARE 62.1-2010，同时 13%. Over the years, the LEED of total Premium Grade A stock
the most. It has also been noted that an certification of Grade A office buildings
加大了吸烟环境控制的适用范
has
Source: USGBC, CBRE Research Q3 2017
Wuhan 22%
increasing number of tenants have 1 definitely become much more
围。 25% LEED certified offices as % of total stock
displayed concerns for air purification common. As of 1H 2017, the total
systems when choosing sites for Grade A Office space in 17 major cities
LEED certified offices as % of
total Premium Grade A stock
Chongqing 20%
2
relocation. was 37 million sqm, of which 8.5
million
3 had been LEED certified, an 20%
Shenyang 20%
LEED v4, is the latest version of the adoption rate of 23%
international standard and was fully 4
Guangzhou 17%
implemented in October 2016. LEED When broken down into individual
v4 has increased its emphasis and cities,
5 Wuxi displayed the highest 15% Changsha 10%
raised standards for interior environ- proportion of LEED certified office space
ments. The assessment of interior at637%, it should be noted however that Tianjin 6%
environment has been adjusted to this is mainly due to its relatively small
10%
account for 16 points instead of 15 and market
7 size. More importantly, the top Suzhou 5%
is now 14.7% of the total weighted three cities (Shanghai，Beijing，and
average which is 1.1% more than the Chengdu)
8 have each achieved a Ningbo 5%
previous version. Air quality standards proportion of more than 30% certified
5%
have also become much stricter which office
9 space. Adoption of the LEED Nanjing 5%
have been updated from the original certification is becoming increasingly
more
10 common and will soon be
ASHARE 62.1-2007 to the ASHARE Qingdao 4%
62.1-2010, and also limiting smoking standard for all high quality projects 0%
areas. thus resulting in its continued promo- Dalian 0%

1Q09

1Q10

1Q11

1Q12

1Q13

1Q14

1Q15

1Q16

1Q17
tion.
 2017 CHINA GREEN BUILDING REPORT
It has become increasing-
ly important for existing
projects to be able to
02
04 meet the operation
06 standards of green
08
buildings. Buildings that
10
12
have already received
14 certification will serve as
16
strong benchmarks and
18
20
reference points for
22 developers while also
24
encouraging the promo-
26
tion of the green building
28
30 initiative.
Regeneration of existing
(older) projects to meet
green building standards
has helped lower operations
costs and increased market
competitiveness
Regeneration of older buildings to
green building standards is said to cut
overall maintenance costs and has been
a major driver of office buildings
seeking LEED certification. According to
survey results published in “World
Green Building Trends 2016”, Chinese
interviewees estimated that after the a
year of renovation, maintenance costs
could be lowered by roughly 4% , and
within 5 years this figure could reach
9%. It is worth mentioning that this
figure is much lower than the global
average of 9% and 13% which means
that is still much room for improvement
in terms of building operations in
China.
Over 25 million sqm of prime office
space in 17 major Chinese cities are
more than 10 years old, and this figure
continue to grow at an annual rate of
9 LEED recertification was not included
F R O M G R E E N TO H E A LT H
10%. Many of the older projects can no
longer meet the demands and
standards of current tenants. Renovation
alongside LEED certification have
helped such projects recapture market
competitiveness. Since 2015, over 20
existing prime office projects across the
17 major Chinese cities have received
the LEED for existing buildings:
operations & maintenance
（EB:O&M）, an area increase of 1.6
million sqm, which is a growth rate of
136%9. The average building age of
these projects is 8 years, the oldest of
them being 18 years.
As of 1H 2017, the LEED EB: O&M had
accounted for more than 27% of all
LEED certified office space in China, an
increase of 4% since 2014; Over 25%
of the existing office space in Beijing,
Shanghai, Chengdu, and Guangzhou
had received the LEED EB:O&M. Of
these cities, Beijing displayed a
relatively higher proportion （44%）
due to its lack of new office supply.
2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H
Taikoo Hui Office Taikoo Hui Retail
Tower 2 LEED EB V3, ranking 1st The world’s first enclosed
in China shopping centre to receive the
01
LEED EB Platinum certification
03
Energy Efficiency: Energy Efficiency: 05
With the help of automated control Taikoo Hui underwent a complete audit
07
systems, lighting is adjusted during of its energy consumption and results
evenings to prevent excessive light showed that it met LEED requirements; 09
pollution; energy consumption is also 11
closely monitored and adjusted to ensure Water Efficiency: 13
efficiency; Installation of water conservation devices
15
in the retail portion of the project has
Water Efficiency: helped save 35% more water than the 17
The installation of water conserving US standard; 19
devices has helped save 35% water
21
annually; Air Quality and Overall Comfort:
The ventilation system meet LEED 23
Air Quality and Overall Comfort: requirements; 25
The use of the MERV13 air filtration
27
system has helped improve air quality; Waste and Recyclables:
Achieved over 50% recycling of all 29
Procurement: disposables. 31
100% of all newly purchased eco-friend-
ly supplies/devices are in use.
CBRE assists Taikoo Hui
Guangzhou in acquiring LEED
Platinum Certification
This mixed-use project is located within
the Tianhe CBD in Guangzhou and is
composed of retail, prime grade-A
office, five-star hotel and a cultural Stephen Tam
centre (cultural centre not a part of
Taikoo Hui ). It is also home to
Senior Director
Asset Services, Greater China
Guangzhou’s first Mandarin Oriental
Hotel and Serviced Apartments. Taikoo
CBRE
Hui was designed by internationally
renowned architectural design firm, CBRE’s Sustainability
Arquitectonica and is managed by Swire Team is composed of LEED
properties.
APs, and is capable of
Taikoo Hui Guangzhou’s two office providing a wide range of
buildings had received the LEED CS LEED consultancy services
(Core& Shell) Gold in 2012. In 2017， including architectural
CBRE’s Technical Sustainability Service
Team assisted the project in acquiring
design, interior design and
the LEED EBOM (Existing Buildings: construction. Our
Operations & Maintenance) Platinum end-to-end solutions helps
certification. In the same year, the retail
clients maximize the
portion of Taikoo Hui became the first
efficiency and potential of
enclosed shopping centre to receive the
LEED EBOM Platinum certification. their projects.
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Office rentals comparison in major CBDs

Source: CBRE Research Q3 2017

LEED Grade A office rent Standard Grade A office rent Rental premium
Major CBDs
RMB/sq.m./mth RMB/sq.m./mth

Beijing - CBD 422.7 390.4 8.3%

02 Beijing - Financial Street 625 637.5 -2.0% 01

04 03

06
Beijing - Zhongguancun 400 350 14.3% 05

08 Shanghai - Lujiazui 519.1 424.4 22.3% 07

10 09

12
Shanghai - Huaihai M. Road 444.8 352.5 26.2% 11

14 Shanghai - Nanjing W. Road 381.6 427.5 -10.7% 13

16 15

18
LEED certified office build- Rental gap between LEED offices and traditional office building Guangzhou - Tianhe CBD 208.8 154.4 35.2% 17
ings outperform non-certi-
20
fied office buildings, invest-
Source: CBRE Research Q3 2017
Guangzhou - Yuexiu 185 126.7 46.0% 19

22 120% High 21

24
ment in green has displayed Median
Shenzhen - Futian CBD 357.5 253.5 41.0% 23
impressive returns
26

28
100% Low
Shenzhen - Caiwuwei 270 270 0.0% 25

27

30
Return on investment has always been
one of the main incentives and drivers 80%
Shenzhen - Houhai 180 202.9 -11.3% 29

31
of the LEED certification for office Chengdu - Renmin S. Road 98.5 84 17.3%
buildings. Case studies and evidence 60%
from our previous China Green
32% 30% 31%
Chengdu - Dongdajie 94 95 -1.1%
Building Annual Reports have already 28% 28% 27% 28% 27% 25% 25%
shown that in most markets, green
40%
Chengdu - Financial City 105 86 22.1%
offices can achieve higher rent levels
and tenancy rates when compared to 20% Chongqing - Jiangbeizui 103 98 5.1%
traditional offices. The advantages of
the LEED certification have become 0%
Chongqing - Yubei 100 87 14.9%
much more apparent in office markets
which have begun to show slowing
Tianjin - Nanjing Road 150 130.9 14.6%
-20%
momentum and stagnant growth. In Tianjin - Xiaobailou 130 122 6.6%
addition to the methodology used in the
previous reports, this year’s report will -40% Qingdao - Haier Road 150 148 1.4%
additionally include LEED status and
submarket data for further in-depth
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Shenyang - Financial District 110 96.8 13.6%
analysis.
97 -2.1%
01 95
Shenyang - Wulihe

premium has begun to narrow. Shenyang - Taiyuan Street 100 77.2 29.5%
Rent levels of LEED office In order to further validate the
Hangzhou - Huanglong 217.5 182 19.5%
buildings outperform tradi- correlation between rent levels and
LEED certification, this report will
Hangzhou - CBD 143.5 135.6 5.8%
tional office buildings by
25%, but this premium has
include submarket data and LEED status
and compare projects of similar
Nanjing - Xinjiekou 149 155.4 -4.1%
gradually decreased location and quality to gain a better Ningbo - Sanjiangkou 110 104.8 5.0%
understanding of value-added factors.
The average rent of LEED certified office The table below compares rent levels of Suzhou - SIP 118 94.9 24.3%
buildings in major Chinese cities was LEED certified offices and traditional
RMB 162 psm per month10 in Q2 offices in major Chinese cities and their Wuxi - Chong’an 90 78.8 14.2%
2017, which was 25% higher than that submarkets. It can be seen that LEED
of traditional offices. As the LEED certification does lead to a rent
Wuxi - Nanchang 76 73 4.1%
certification becomes increasingly more premium in 24 of the 31 submarkets
common in first tier cities and gains (more than 75%), where the average
Wuhan - Hankou CBD 138 124 11.3%
traction in second tier cities, the rent rent premium is 11.3%. Wuhan - Jianshe Avenue 120 121.7 -1.4%
10 The average national office rent is calculated by Simple Average
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Office rental premium: LEED offices Vs traditional office buildings

Source: CBRE Research Q3 2017 02
35%
02
In a tenant’s market, LEED 01

04
30% certified projects continue to 03

06
show high occupancy rates 05
25%
08 07
20% Total new office supply in China over
10 09
the period of 2015-Q2 2017
12 15% 11
amounted to 19 million sqm. This
14 continuous peak in supply has resulted 13

16
10% in most cities becoming tenants’ market 15

18 with rent levels showing slowing growth 17

5%
since mid-2016.
20 19

22 0% 21
In the past four quarters, the average
24
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 23
occupancy rates of LEED projects in
26 China was 81.7%, which is 1.5% higher 25
LEED Vs General
28 than that of traditional offices; average 27
LEED Platinum Vs Certification below LEED Platinum
30
occupancy of LEED platinum projects in 29
To further understand the effects of China was 86.7%, which is 10% higher
31
different LEED certification levels, rents than that of traditional offices. These
of LEED platinum projects will be figures vividly reflect the advantages of
compared to projects with lower LEED the LEED certification.
certifications. The average rent levels of
LEED platinum projects is RMB 318 psm
per month, a 10% premium compared
to projects with lower LEED certifica- Office occupancy comparison
tions. Although the rent levels of LEED Source: CBRE Research Q3 2017
platinum projects had experienced a
temporary decrease in 2016, it has 88% 1.0%
managed to maintain a 10% premium
which is due to the scarcity of supply. 86% 0.8%

As of Q2 2017, over 2.22 million sqm

84% 0.6%
of quality office space had received the
LEED platinum certification. Since
82% 0.4%
2014, China had begun to trend
towards higher LEED certifications, LEED
platinum certified space displaying 80% 0.2%
growth of more than 200%, and now
accounting for 22% of all LEED certified 78% 0.0%
space in China, which is up from 14%.
However, the supply of LEED platinum 76% -0.2%
projects is still relatively scarce, as only
six (Beijing, Shanghai, Guangzhou, 74% -0.4%
Shenzhen, Chengdu, Wuhan) of the
seventeen major cities have projects
72% -0.6%
which have adopted this certification.
The total area of LEED platinum projects
70% -0.8%
only accounts for less than 3% of total
quality office space in China. 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17

National average QoQ growth (RHS) Traditional office building (LHS) Below LEED Platinum (LHS) LEED Platinum (LHS)
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02
PART THREE 01

04 03

06 05

08 07

10

12

14
2012 Green finance is a part of China’s economic restructuring
strategy and driver of economic sustainability. Since 2015, a
series of policies related to green finance had been
09

11

13
Green Finance Guideline

“Green finance”
published, rapidly establishing this new market. In 2016,
16 15
China began to issue its first green bonds, by the end of the
18 17
year, its market size of USD 36.2 billion11 was the largest in

2013
20 the world; During the G20 Hangzhou summit, the topic of 19

22 “green finance” made its first official appearance. 21

to possibly become
24 23

26
Green Credit Policy and Statistics 25
Building energy efficiency and Green Financing
28 Source: China Banking Regulatory Commission, CBRE Research Q3 2017 27

30 29

2014 106 B
31

a new driver of growth Green Finance Practice and Evaluation System

2015 1.5%
for green buildings Energy Efficiency Finance Guidelines
Announcement on Develop and Promote Green Credit
List of Green Bond Project
Guidelines for Issuing Green Bond
46 B 0.9%

2016
Announcement on Corporate Green Bond Pilot Program
Guidelines for Building-up Green Finance System
G20 Summit in Hangzhou promotes green revolution 2013 2016.6 2013 2016.6
Loan balance Proportion of each year

2017 However, the majority of green credit/bonds have been

China Securities Regulatory Commission published
“Master plan for Pilot Zones for Green Finance Reform
and Innovations” which had established new pilot
zones in the provinces of Guangdong, Jiangxi,
Zhejiang, Guizhou, and Xinjiang.
invested in green energy and transport with very little
emphasis on real estate. For example, the amount of green
credit issued by 21 major banks in 2016 was RMB 7.26
trillion, whereas only 1.5% (RMB 106 billion) of this had been
invested in green buildings. In addition to this, none of the
33 green bond issuers in 2016 were from the real estate
industry.

11 China Green Bond Market Report 2016 issued by China Central Depository
& Clearing Co.,Ltd. and Climate Bonds initiative
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Summary of Green Bond Issuance of Chinese developer and Investment

Source: Public Information, CBRE Research Q3 2017

Issuer Date of Date of Amount Place of Interest Purpose of capital

issuance maturity issuance rate
02 01

04 To help finance its Kowloon East commercial project 03

06 Link REIT 2016 2026 USD 500 mn Hong Kong 2.875% and to add Eco-friendly features to some of its 05
existing properties
08 07

10 09
Modern Land 2016 2019 USD 350 mn Singapore 6.875% Raise capital for Eco-friendly projects
12 11

14 To help finance its Kowloon East 13

Refinance existing debt, and raise capital for general commercial project and to add Eco-friend-
16 Modern Land 2017 2019 USD 150 mn Singapore 6.875% corporate operation and project development ly features to some of its existing 15
properties
18 17

20 19
Longfor Properties 2017 2022 RMB 1.6 bn China 4.400% 为符合绿色债券原则且具有环境效益的
22 现有项目及业务提供资金 21
Raised RMB 1.72 bn to finance its
24 23

26
Longfor Properties 2017 2024 RMB 1.44 bn China 4.670% Chongqing project and Shanghai HQ CBD project,
现有债务再融资，一般企业目的以 25
and the remaining for general corporate operation 及为现有和新物业项目提供资金
28 27

30 Longfor Properties 2017 2024 RMB 1.0 bn China 4.750% 29

31

Green finance has also proven to be a

Average financial performance of GRESB Vs Non-GRESB participants
major driver for developer, investors,
Source: The Financial Rewards of Sustainability: A Global Performance Study of Real Estate Investment Trusts, Franz Fuerst
and landlords to comply with environ- (University of Cambridge), 2015

mentally smart decisions in international

This soon changed in 2017, as one of
the major domestic developers, Longfor
Properties, consecutively issued two
batches of green bonds during Q1 with
an estimated value of RMB 4.04 billion,
which purpose is to finance two of its
major green building projects in both
Chongqing and Shanghai. This has
served as a pilot and has opened doors
for developers considering financing
projects through this method. Prior to
this, Link REIT had issued green bonds
of USD 500 million in Q3 2016;
Modern Land had issued green bonds
of USD 350 million in Q4, however,
both these cases occurred overseas. As
the government continues to delever-
age and tighten regulations on the real
estate market, green finance has
become an innovative form of finance
for developers. As the concepts and
guidelines of sustainability and green
buildings becomes clearer, the
requirements for green financing have
also become stricter, resulting in a much
more regulated market. For example,
“Guidelines for Financial Support
Through Green Bonds” requires that all
prospective projects at least meet the
minimum of a two-star rating. From this
it can be understood that green finance
and green buildings should be quite
markets. GRESB is an industry-driven
organization committed to assessing the
environmental, social and governance
(ESG) performance of real estate assets
globally, including real estate portfolios
and infrastructure. Since 2011, GRESB
has been annually publishing its
assessment results. Local developers
such as CR Land, China Overseas
Land, CITIC capital have all joined the
GRESB assessment. According to the
GRESB website, 850 property compa-
nies and funds, jointly representing
supportive of each other. In June 2017, more than USD 3.7 trillion in assets
the State Council had passed the under management, participate in the
“Masterplan for Pilot Zones for Green GRESB Real Estate Assessment. The
Finance Reform and Innovations”, Infrastructure Assessment covers 64
establishing Guangdong, Jiangxi, funds and 160 assets, and 25 portfolios
Zhejiang, Guizhou, and Xinjiang as the complete the Debt Assessment. GRESB
five pilot zones for green finance reform data and analytical tools are used by
and innovation. 66 institutional and retail investors,
including pension funds and insurance
companies, collectively representing
over USD 17 trillion in institutional
capital, to engage with investment
managers to enhance and protect
shareholder value.
With the GRESB assessment in place,
12 From GRESB 2017 Debt Assessment – Participant Best practice, GRESB, 2017
Non-GRESB ROA 3.193 3.599 3.696 3.335
GRESB ROA 3.618 2.683 3.055 3.711
Non-GRESE ROE 5.994 7.577 6.607 7.465
GRESB ROE 7.949 6.267 7.011 8.515
Non-GRESB Return Index (RI) -0.55% 7.48% 2.77% 4.13%
GRESB Return Index (RI) -2.44% 6.16% 4.21% 4.08%
the delivery and execution of each increasingly tentative to the ESG
green building project need to be performance of their investments which
incorporated into a company’s strategy. is why we believe finance will also play
Simultaneously, data from such projects a major role in the adoption of green
has been made more transparent building standards. To further support
meaning that investors can easily this theory, financial institutions which
monitor and evaluate their investments. participated in the GRESB 2017
In 2015, the University of Cambridge Assessment have also given mention of
published a report which compared and the practical value of this process. For
analyzed GRESB scores of REITs example, ING Bank has expressed that
portfolios to financial reports and came sustainable projects which have
to the conclusion that the “green” obtained certain certifications are
attribute of real estate can lead to eligible for preferential loans, in many
higher financial returns. cases, such projects can also be
mortgaged up to 5% higher than
Real estate investors are becoming projects without certifications.12
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02
PART FOUR 01

04 03

06 05

08 07

10 09

12 11

14 13

From Green to Healthy

16 15

18 17

20 19

22
Healthy Vs Green 21
Source: Publication information, CBRE Research Q3 2017
24 23

New Development Trends of

26 25

28
28 The rapid development of China’s economy over the past 27

30 forty years has been one of the major success stories of the 29

Green Buildings LEED V4

century. However, this fast-forwarded process of industrializa-
tion and urbanization has left the nation with numerous side
31

effects such as environmental pollution, chronic diseases,

and an aging population. With the advancement of
technology and higher disposable incomes, the urban
population has become increasingly concerned about their

36
environmental surroundings such as the quality of air, water,
and food. To better regulate and support these issues, the
State Council published “Healthy China 2030- a planning
BREEAM outline”, which has targeted 2030 as the year in which China
is able to meet the healthy lifestyle, services, security,
environmental, and industrial standards of high income
nations.

56 LBC
Launch of the WELL certification in China
has kindled the concept of “Healthy Build-
ings”

Buildings and their supporting facilities are some of the main

causes of greenhouse gas emissions and energy consump-

100
tion. Yet, as our main destinations for living and work, they
have inevitably become a crucial part of our health. In recent
years, the concept of healthy buildings has been promoted
around the world and has gradually gained popularity. In
WELL 2014, the WELL certification was unveiled in the US and was
the first building standard which focused exclusively on
human health and wellness; In March of 2015, the GBCI
100% of WELL Building Standard and IWBI launched the WELL certification in China.
credits contribute towards health
Whereas LEED, BREEAM, and Green Star certifications are
and wellbeing of people
more focused towards the eco-friendliness and sustainability
of buildings, the WELL certification is more about the health
and wellbeing of the people inside them. The WELL standard
% of rating system for health and wellness criteria
is a major addition and complementary assessment to the
% of remainder points
current system of green buildings.
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

Air Optimized and achieve stringent indoor air quality standards

Water Optimized and achieve stringent water quality standards China follows suit and WELL Building Standard China Assessment Standard for
publishes its own “Assess- Source: IWBI, CBRE Research Q3 2017 Healthy Building
Comfort Create an indoor environment that is distraction-free, productive, and soothing ment Standard for Healthy Evaluation index system and weights Source: Architectural Society of China, CBRE Research Q3 2017

02 Buildings” Evaluation index system and weights

01

Utilized building design technologies and knowledge-based strategies to

Fitness
04 03

06 encourage physical activity In January 2017, the ASC implemented 05

08
the “Assessment Standard for Healthy Air 29% Air 24% 07
Buildings” /ASC 02-2016. From then on,
Encourage healthy eating habits by providing occupants with healthier food
10

12
Nourishment choices and knowledge
China had its own standard in which it
09

11
defined healthy buildings as: In addition
14 to meeting basic requirements and
Water 8% Water 16% 13

16 Light Minimize disruption to the body's circadian rhythm by improved visual comfort functions, healthy buildings are capable 15

18 of providing a healthy environment, with 17

Support mental and emotional health, providing the occupant with regular facilities and services which can further Comfort 12% Comfort 22%
20

22
Mind feedback and knowledge about their environment improve upon the physical and mental
19

21
health and wellbeing of people.
24 23

26 The seven core concepts of WELL

Global ranking by WELL certified and pre-certified space
The “Assessment Standard for Healthy Fitness 8% Fitness 10% 25

28 include: Air, Water, Nourishment, Light, Buildings” is very similar to the “Assess- 27
Source: IWBI, CBRE Research Q3 2017
30
Fitness, Comfort, and Mind. These ment Standard for Green Buildings” as 29
concepts are then refined into a they both use the same three-star rating
hundred features which are scored to system and are divided into certifications
Nourishment 15% Humanities 16% 31

complete the overall assessment. One
of the most important concepts is Air, in
which accounts for more than 29% of
the assessment. The 100 points are also
divided into 41 Preconditions and 59
Optimizations. If a project fulfills all 41
Preconditions, it is thus eligible for a
silver award, whereas Gold and
Platinum projects need to achieve either
40% or 80% of the Optimization
conditions.13
The Chinese market has become one of
the fastest adopters of the WELL
certification. According to IWBI，since
its launch over two years ago, the
number of registered/certified projects
has reach 104, ranking second in the
world; total area of these projects is 2.6
million sqm which is the same as that of
the US. Over 1 million sqm of project
space has been awarded with the WELL
certification, ranking first overall.
Sino-Ocean Land, China Merchants
Property Development, Greenland
Group, and China Life have become
the first batch of developers/institutional
investors to receive the WELL certifica-
tion for their projects.
for design and operations. The
“Assessment Standard for Healthy
Buildings” requires that candidate Light 11% Service 12%
projects be full fit out and meet all green
building standards – otherwise meaning
that the project has already received a
green star rating or has passed the Mind 17%
review of construction blueprints.
In terms of assessment and scoring, the
“Assessment Standard for Healthy
Buildings” and WELL standard have
similarities, as well as differences which
have been adjusted for localization. The
Healthy Building Standard is composed
sq.m. of six major categories including: Air,
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 Water, Comfort, Fitness, People, and
Service. Each category is scored
US
Minimum Requirement, Overall Rating
China and Bonus Points14. Prospective projects
must fulfill all Minimum Requirements
Australia and those who achieve a score of 50,
France
60, 80 or higher and can receive the
respective one-star, two-star, or three-star
UK certification. Each category is weighted
differently, however, both certifications
Canada
have given Air quality the most
Thailand importance in their assessments; it is
noted that the WELL standard has stricter
India requirements for assessment of air quality
UAE when compared to the Healthy Building
Standard. 15
Poland Certified Pre-certified Registered

14 “Minimum requirements” is equivalent l to “Precondition” feature of WELL Standard, “Overall Rating is equal to “Optimization” feature of WELL Standard and the
13 WELL Certification’s five innovation features was not included; The rating of Preconditions and Optimization are based on the premise of “New and Existing Buildings” “Bonus Points” is equivalent to the innovation score of WELL certification;
standards; 15 WELL Standards is based on “New and Existing Buildings, while China Assessment of Healthy Building is found upon public buildings
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02 Millennials: Shaping the future of Employers and employees: Workplace meet WELL, employees feedback 01

04 real estate (Percentage of respondent) experiencing rising trends of Source: CBRE Corporate Global Headquarters Los Angeles, California, Workplace 360 Study, 2014 03

06 Source: CBRE Research Q4 2016 health awareness in the 05

08 60% office place 07

92
10 09

12 Workplace competition and imbalances Because of this, a healthy work place 11

in everyday lifestyle have become
14
increasingly common in China’s rapidly
16
growing economy. This continuous
18 pressure has thus led to rising levels of
has increasingly become one of the top Said the new space hascreated a positive effect on
13
requirements of today’s workforce. The their health and wellbeing
15
average white collar worker spends
roughly 1/3 of their time (excluding 17

94
20 health issues amongst the working overtime hours) in the office, but 19
50% population. According to results from according to the “2015 White Collar
22 Said that the new spacehas a positive impact on 21
the“2017 Shanghai White Collar 8-hour Survival Report” published by
24 their business performance 23
Health Index White Paper” published by Zhaopin.com, the overall satisfaction
26 25
the Shanghai Foreign Service Group levels of their working environment

83
28 27
(FSG), by 2016, the proportion of received a score of 2.59 out of 5; only
30 irregular physical examinations of white 20% of white collar workers were 29

collar workers had increased to 96%, “satisfied/very satisfied” with their Feel more productive 31
an increase of more than 11% since current workspace, whereas up to 46%
40% 2011. The three major health issues of those surveyed expressed dissatisfac-
were: being overweight（35%）. fatty tion. The survey also shows that Post

liver (18%), and hyperlipemia (16%).
These health issues have mainly been
caused by poor lifestyles and bad eating
habits.
100
90s employees displayed the highest
levels of dissatisfaction with their
working environments; 94% of them Said that clients are interested in their new way of working
have expressed that working environ-
ments have become one of the key

93
Currently provided
determining factors of their job
30% decisions.
Caring the most for new job
Said that they are able to more
Similar views and results have also been easily collaborate with others
shared in CBRE’s “Chinese Millennials-
Shaping the Future of Real Estate”
report. Figures show that the expecta-
tions of Millennials can be drastically
different from the actual amount of Further findings show that 75% of WELL certified project. Feedback from through other key indicators such as
20% recreational space and greenery. Millennials believe that a comfortable employees regarding this new office rising medical expenditure and
working environment reflects the overall concept have been completely positive, employee absence. Such trends have
potential and characteristics of a good comments involving improvements in pushed companies to be more
employer. Based on current physical health, work efficiency, work proactive in these matters and many
demographics, Millennials and performance, and team collaboration. have gone from only providing medical
Generation Z will account for more Results from a survey issued to office insurance to gradually shifting towards
than 50% of the workforce by 2020. tenants also shows that over 72% of healthier working environments and
This change in structure will cause many companies believe that healthier health management programs. Results
10% employers to rethink their strategies working environment have helped retain from the “2017 Shanghai White Collar
workplace strategies and better talent; 75% of companies feel that Health Index White Paper” show that
accommodate future needs. healthier working environment lead to 32.5% of companies have already
improved levels of performance and implemented employee health
There are many international case devotion by employees. management programs, 29.6% are in
studies which reflect the effects and considering or in the process of
benefits a healthy workplace has on its As the Chinese market for “healthy implementing such programs.
employees. One of the most renown workplaces” is still in its infancy, data
0% being CBRE headquarters in Los regarding this topic is relatively limited.
Angeles, which was also the world’s first However, this can also be observed
Sleep/ Canteen Ability to On-site Green Coffee Shower Games Child Dry Bike
Rest area receive convenience space in bar room daycare cleansing racks
Shopping store building/ centre service
deliveries Rooftop
 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H 2017 CHINA GREEN BUILDING REPORT F R O M G R E E N TO H E A LT H

02 01

04 03

06 05

08 07

10 09

12 11

14 13

16 15

18 17

20 19
Financial impacts of healthier building
22 21
Source: The Drive Toward Healthier Building 2016: Tactical Intelligence to Transform Building Design and Construction, Dodge Data & Analytics, 2016
24 23

26 25

28 27

30 Don’t know 52% 48% 58% 29

31

Negative impact 1%
No impact 13% 30% 15%

Positive impact 35% 22% 26%

Ability to lease building Ability to charge Value of the building

more quickly a premium rent

Developers and Landlords:

Investment in Healthy
Buildings will be an ongoing
process

In contrast to the quick adoption of the
“healthy workplace” by companies and
their employees, developers and
landlord may need more time to
actually buy into the concept. In 2016,
Dodge Data & Analytics surveyed
developers and landlords in the US to
gain a better understanding of their
actual views and attitudes towards
healthy buildings. Results show that a
majority of them believe that healthy
buildings are good for branding and
market differentiation and also capable
of improving employee satisfaction and
devotion. However, when asked whether
the attribution of “health” had effects on It can thus be interpreted that these demand of healthy environments from
leasing times, rent levels, and capital indicators play a major role during the both the government and public will
value, the “has positive effect” option decision making process. Developers push stakeholders to ultimately embrace
was chosen 35%, 22%, 26% respective- and landlords need more data and case these technical advancements and
ly. studies before further action is taken. future trends.
The healthy buildings market in China
faces similar challenges. The uncertain-
ness of future tenant behavior and
whether the government will subsidize
the additional investment needed to
fulfill the requirements of the WELL
standard have become major determi-
nants for developers and landlords.
Nevertheless, in a market as large as
China’s, increasing awareness and
For more information about this regional report, please contact:

CBRE Research
Sam Xie Ivy Lu Ariel Lee
Senior Director Director Assistant Manager, Eastern China
Head of Research, China Head of Research, Eastern China ariel.lee@cbre.com
sam.xie@cbre.com ivy.lu@cbre.com

CBRE Asset Service USGBC

Stephen Tam Nellie Cheng
Senior Director Managing Director
Asset Services, Greater China U.S. Green Building Council
stephen.tam@cbre.com ncheng@usgbc.org

We would like to express our sincere appreciation for the support offered by IWBI:

Tony Armstrong
Vice President, Asia
tony.armstrong@wellcertified.com

For more information regarding global research and activity, please contact:

Nick Axford, Ph.D. Richard Barkham, Ph.D., MRICS

Global Head of Research Global Chief Economist
nick.axford@cbre.com richard.barkham@cbre.com

Henry Chin, Ph.D. Jos Tromp Spencer Levy

Head of Research, Asia Pacific Head of Research, EMEA Head of Research, Americas
henry.chin@cbre.com.hk jos.tromp@cbre.com spencer.levy@cbre.com

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This report was prepared by the CBRE China Research Team, which forms part of CBRE Research—a network of preeminent researchers who collaborate to provide real estate
market research and econometric forecasting to real estate.

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