Cities could better reach climate goals by updating existing buildings

JLL report finds retrofitting is quickest, most cost-effective way.
Cities could better reach climate goals by updating existing buildings
<strong> Courtesy iStock </strong>

Grand Rapids buildings could soon see some changes.

With climate change on the mind and a need to reach Paris Climate Agreement goals, real estate firm JLL released a report titled Retrofitting Buildings to be Future-Fit. Rather than building new sustainable developments, the report suggested retrofitting buildings will be the quickest and most cost-effective way to accelerate decarbonization.

“We have a critical role to play within commercial real estate to have a meaningful and necessary impact on reducing global carbon emissions, and we can start right away,” the JLL report said. “The technology systems, processes and means to reach net zero carbon and beyond exist today, but there is no one singular strategy, technology or entity that will address the journey, and there is also no one-size-fits-all approach.

“While the scope and complexity of the challenge is immense, retrofitting existing buildings is the quickest and most cost-effective way to accelerate decarbonization in the built environment.”

Grand Rapids is part of the National Building Performance Standards Coalition. The coalition of more than 30 cities is a White House push to reduce emissions.

“We recognize that decarbonizing our buildings is one of the most important pathways to reducing communitywide carbon emissions,” Mayor Rosalynn Bliss said in a statement. “It is critical that equity be a dual priority embedded into any building performance standards or other high performing building programs designed for our community.”

Cities contribute approximately 70% of total global CO2 emissions.

Approximately 60% of Fortune 500 companies have some form of climate or energy goals. Those same companies are looking for existing space to help reach those goals, according to JLL. According to the firm’s 2022 Future of Work survey, 74% of organizations said they would pay a premium for leasing a building with sustainability and green credentials.

With that in mind, the firm expects more collaboration between building owners and tenants in regard to sustainability. Those will likely need co-investment from the collaborators.

To reach goals set by the Paris Climate Agreement in the global north, retrofitting current buildings needs to go from approximately 1% to 3%. The increase could cost upward of $3 billion.

According to JLL, in 10 major cities in Europe and North America, 90% of office buildings more than 10 years old will not meet future energy efficiency standards. But 80% of office buildings in use now will still be in use in 2050.

Those development costs will also help upskilling workforces and increasing technology within cities.

The upgrades and retrofits include:

  • Wall and roof insulation updates
  • Glazing replacement
  • Heating and cooling systems
  • LED fittings
  • Ventilation
  • Generating on-site energy
  • Building Management System optimization

Several major U.S. cities have net-zero goals by 2050, while San Diego has a goal of 2035. Three other cities, according to JLL, have set a 2040 goal: Denver, San Francisco and Austin.

This story can be found in the Dec. 12 issue of the Grand Rapids Business Journal. To get more stories like this delivered to your mailbox, subscribe here.