The office landscape in Hong Kong is undergoing a significant transformation as sustainability becomes an integral part of the market. Once considered a unique feature, green-certified buildings are now commonplace in one of Asia Pacific’s leading office markets. According to recent findings, the advantage that allowed landlords to charge higher rents for eco-friendly spaces is diminishing due to an increasing supply meeting demand. Despite this, these structures continue to attract occupants at a higher rate, particularly multinational corporations within finance and professional services sectors, which are driven by environmental, social, and governance (ESG) goals.

However, non-green buildings face mounting challenges in today’s evolving market. As preferences shift towards sustainable options, older properties lacking upgrades encounter greater rental discounts and elevated vacancy risks. In Hong Kong, where new developments are constrained and certified spaces abound, outdated assets struggle to compete. Meanwhile, investments in renovations lag as landlords hesitate to commit funds without transparent financial incentives or collaborative agreements with tenants. This disconnect slows advancements despite clear market indications that sustainable offices are essential rather than optional.

Hong Kong has set a regional standard through its robust adoption of BEAM Plus certification and extensive green-rated inventory. Yet, as sustainable architecture transitions from exceptional to expected, the next frontier emerges: raising the entire market to meet contemporary standards. Failing to do so could leave some players behind in a rapidly advancing industry focused on environmental responsibility and innovation.