Healthy homes

Sustainable development is imperative for real estate developers and investors with long-term commitments in China, says global property consulting firm Jones Lang LaSalle in a recently released white paper.

The report notes that rapid economic expansion in China has resulted in both commercial and residential buildings that were constructed at a considerable pace - while awareness of sustainable development and operations lagged behind that of the West.

Discussion and implementation of sustainable building practices has been gaining momentum in recent years due to the threat posed by continued unchecked development.

There are encouraging signs that the central government has begun to increase its efforts to improve building standards and promote energy efficiency.

"The process of implementing sustainable building practices in the real estate sector is a partnership through proper planning and consultation between parties including owners, occupiers and builders," says David Hand, managing director of Jones Lang LaSalle Beijing, "Greater benefits can be obtained when sustainable measures mutually reinforce one another."

"Although the government has made good progress with enforcement at the district level, more needs to be done to significantly impact China's growing environmental issues," says Justin Kean, author of the report and associate director of occupier research at Jones Lang LaSalle.

Although there is a growing base of knowledge on sustainability and environmentalism in China, education of both owners and occupiers is the first and key factor to ensure they successfully implement green strategies, the report says. Central to any educational and internal programs are energy and water conservation, waste management and improving indoor air quality.

Due to the high level of electricity and water consumption in commercial buildings, property management practices play an important role in existing developments. The process of making commercial buildings more sustainable is akin to embarking on a journey.

There is no quick fix and the process of improvement must be done in partnership with all stakeholders. In its white paper, Jones Lang LaSalle highlights several no cost, low cost and moderate cost improvements that can enhance a building's efficiency.

"We know that sustainable buildings use techniques, materials and technologies that minimize a building's impact on the environment in their design, construction and operational systems, while adequately servicing and supporting the activities within," says Kean.

"In the long term, operating costs for sustainable buildings are cheaper and make for a better workplace," says Eric Lee, head of property management for North Asia at Jones Lang LaSalle.

He believes operating costs can be saved mainly in energy savings, water savings, waste reduction, valuation improvements and retrofitting.

"We notice that the shift toward sustainability is gaining momentum in China. Whether it is adopted through a genuine concern for the planet, government enforcement or because of positive financial impacts, the basic message is that environmentalism and sustainable buildings are becoming an important part of doing business in this part of the world," says Kean.

Although China lags behind in implementation of sustainable techniques, many of the technologies and practices necessary to make significant impact and savings have already been developed in the West, so the country has the opportunity to leap-frog ahead as it has done in so many other areas.

(China Daily 05/21/2007 page7)