COMMERCIAL BUILDING OCCUPIERS' PERCEPTION OF GREEN BUILDINGS

Abstract

Sustainable development has become the new catchphrase in real estate recently due to the increasing international concern over climate change, diminishing natural resources and rising energy costs. Green Buildings, a relatively a new concept now, will be expected to expand its role in sustainable real estate in the near future. In Singapore, the government has undertaken efforts to encourage and recognise the development of Green Buildings. Benefits of Green Buildings are many. However, questions remain with regards to the verifiability of the claims made for Green Buildings. This paper assesses the market’s perception of the benefits of Green Buildings and ascertains the influence of these benefits on commercial building occupiers’ acceptance of Green Buildings. Barriers that are holding potential occupiers back are also explored and this could provide a basis for ongoing research to overcome the obstacles that are challenging the development of Green Buildings. The paper concludes that benefits that will directly impact the business’ economic performance have a significant influence on commercial building occupiers’ willingness to invest in, and occupy, Green Buildings. Profitability is the priority for many. Environmental and unquantifiable benefits, though recognized by the market, are less important in influencing occupiers’ decision-making. Price, reliability and effectiveness of green features, as well as apathy towards environmental issues, slow the acceptance of Green Buildings in Singapore.