Brazilian Market Has Experienced a Leap in Green Buildings

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Faria also points out that even now, when the real estate market is very slow due to the economic crisis, new green building projects are under way.

If you look the Brazilian prime commercial real estate market from a recent historical perspective that considers the last 20 years, there has been a great progress in the field of green buildings.

Over this 20 year period – which also marks the start of operations of JLL in Brazil –, investing in buildings that incorporate concepts such as energy and water efficiency and proper waste management has become part of the investing policy for funds and institutional investors in the sector.

It’s a market movement driven by large global funds and real estate portfolio managers seeking to improve investment efficiency by reducing risk,” says Felipe Faria, managing director of Green Building Council Brasil.

It is possible to mitigate risk as the benefits offered by green buildings to occupiers result in increased tenant retention and lower default rates, explains Faria.

Faria also points out that even now, when the real estate market is very slow due to the economic crisis, new green building projects are under way.

These projects are mostly in the industrial sector, but also in the retail, data center and logistics center segments,” he notes.

Certification

LEED, or Leadership in Energy and Environmental Design, is an international green certification and green guidance program for buildings. It is the most recognized seal of approval for green buildings. Used in 143 countries, the program’s intent is to encourage the design, construction and operations of buildings using green building practices.

Today, Brazil is among the leading countries in LEED certified projects and projects pending certification. In December 2015, there were 313 LEED certified projects and another 1,052 registered projects pending certification.

Photo: Shutterstock/ Andrew Lan