LEED Platinum green certification - "brand name" standard for office real estate

The Era of Green Offices

In Hanoi, existing buildings that have been on the market for many years and lack green certifications are undergoing renovation and upgrades. New buildings, on the other hand, aim to achieve green certifications. Specifically, in 2021, Hanoi witnessed two bright spots in international-quality office real estate that achieved green certifications: Capital Place Hanoi and TechnoPark Tower. Capital Place received LEED Gold certification, and TechnoPark Tower achieved LEED Platinum certification. In 2022-2023, Hanoi continues to welcome three other LEED Gold projects, and it is expected that by 2024, the market will see three new Grade A buildings achieving LEED Gold.

According to Circular 96/2020/TT-BTC of the Ministry of Finance, companies listed on the Vietnam Stock Exchange must disclose ESG reports, assessing environmental and social impacts. Therefore, all businesses need to evaluate criteria such as greenhouse gas emissions, energy, and water savings.

As a result, the office market has witnessed a significant increase in demand for renting new, well-constructed, and environmentally friendly buildings with high-quality technical systems.

According to the latest Savills Impacts 2023 report, in the office sector, demand for quality projects has created a clear differentiation in the market. Tenants are willing to pay extra to rent green and sustainable office spaces. Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Hanoi, notes: "The strong shift in tenant demand has somewhat increased competition between buildings, creating rental price pressure for old buildings that do not meet environmental criteria. Greening office buildings has become almost a necessity. Working in these projects, businesses will optimize operating costs, save energy consumption, and provide a workspace that emphasizes physical and mental health while promoting collaboration among employees."

"Hanoi and Ho Chi Minh City also have a large number of old buildings that do not meet green standards. These buildings may face pressure to reduce prices to compete without appropriate renovation and upgrades," Minh adds. "Especially in the current situation, with rising fuel prices and many countries setting targets to reduce CO2 emissions, the demand for renting offices in certified green buildings is increasing. Invisibly, this will create increased price differentiation pressure."

International Green Certification - LEED (Leadership in Energy and Environmental Design)

Internationally, green building assessment systems are becoming the standard for determining the competitiveness of each project. Some popular certifications include BREEAM and EDGE (from the UK), Green Mark (from Singapore), and BEAM Plus (from Hong Kong). In Vietnam, in a market not yet familiar with green building certification systems, LEED (short for Leadership in Energy and Environmental Design) is emerging as a familiar certification for high-quality and modern office buildings.

LEED is considered a symbol of pioneering and sustainability. Created in the 1990s by the U.S. Green Building Council, LEED certification aims to ensure a fair and transparent assessment system for green buildings.

Beyond assessing green spaces and environmental friendliness, the LEED criteria system also considers surrounding transportation facilities, resource and energy efficiency, and indoor air quality. Based on these criteria, each project is scored and classified into four levels, with LEED Platinum being the most stringent, followed by LEED Gold, LEED Silver, and the basic LEED Certified.

Several iconic buildings worldwide have been developed following LEED criteria, such as Facebook Headquarters (LEED Platinum), Taipei 101 (LEED Platinum), Shanghai Tower (the world's second tallest building, LEED Platinum), and Bryant Park (LEED Platinum). In Vietnam, the market has only recognized two projects that achieved LEED Platinum certification, with TechnoPark Tower in Hanoi being the only office building.

Chu Thanh Huong, representative of Vinhomes Office Leasing, states: "With the goal of developing an internationally quality office building and demonstrating a strong commitment to sustainable development, TechnoPark Tower is our first project to successfully achieve the stringent LEED Platinum rating. This achievement not only brings a high-quality international office building to the market, meeting the requirements for sustainable development and creating a healthy working environment for the tenant community but also contributes significantly to Vietnam's journey towards Net Zero."

Entering operation in 2021, TechnoPark Tower is an office project in Hanoi covering nearly 110,000 square meters of green office space. In this project, advantages in regional connectivity, transportation links, and innovative solutions played a crucial role in achieving the most demanding rating of the international LEED certification.

In addition to the on-site electric vehicle system and commuting within Hanoi, the building integrates various technology applications into operational management, such as using artificial intelligence (AI) in Access Control, Car Parking, and CCTV systems.

LEED Platinum certification places a focus on creating a healthy working environment for both tenants and staff. For example, the building uses 26mm thick Low-E box glass to maintain a stable internal temperature, effectively preventing heat transfer from inside to outside and vice versa while ensuring the permeability of sunlight. The design of TechnoPark also aims to minimize light pollution by automatically turning off the front lighting system from midnight.

Source: Báo Markettimes

https://markettimes.vn/xanh-hoa-van-phong-lam-viec-tro-thanh-xu-huong-tai-ha-noi-39261.html