Unlocking the ‘green premium’ with expert, data-driven valuation

The client's vision for its new brown-to-green investment fund required finding poorly performing assets across London, Paris and Berlin, then retrofitting and modernising them, with a particular focus on improving sustainability credentials. To achieve the ‘green premium’ in these cities, firm leadership turned to JLL for detailed data and insight to pinpoint where and how promoting ESG would drive returns.

But given the dynamic nature of each of these global cities, it would be extremely challenging to achieve that level of granular data across key submarkets within each one.

Working as an integrated One JLL team, the ESG Value and Risk team joined forces with JLL Research and Sustainability Consulting—and together also drew input from capital markets experts in the local markets. We provided regulatory review, market sentiment tracking and asset decarbonisation pathway analysis, with value impact advice integrated at each stage.

Across 50 submarkets JLL analyzed specifics including grants and planning policy, district heat network availability, and the level of investment needed to provide a market-leading product. We reviewed supply and demand imbalances by examining the footprint of local occupiers with clear sustainability goals and the future development supply pipeline of net-zero buildings. On the market side, we integrated data on take-up, vacancy, prime rents, rental growth projections, capital values and prime yields.