JLL's investment management arm has raised initial commitments for its inaugural fund aimed at fast-tracking decarbonization efforts for commercial real estate portfolios.

LaSalle Investment Management raised $370M for its LaSalle Property Planet Protection Fund to fuel a strategy of decarbonization through building upgrades.

Through the fund, LaSalle will acquire properties in need of upgrades and invest in renovations to improve energy use intensity and decrease carbon emissions, the company announced Wednesday.

The fund plans to target deep retrofits of vacant buildings, lighter retrofits for properties with active tenancy, and a small portion of ground-up development. LaSalle plans to reach more than a 30% reduction in energy use intensity for properties with the fund.

Funding commitments have come from the Development Bank of Japan Inc. and the California State Teachers’ Retirement System. The fund has received commitments from other wealth management firms, international pension plans, LaSalle and JLL, ESG Today reported.

“Securing these initial foundational capital commitments to Lp3F is a validation of the significant market opportunity presented by the transition to a more decarbonized global economy,” Ryu Konishi, the fund's manager, said in a statement.

The fund will be executed by LaSalle's global real estate platform, which oversaw more than $86B in real estate across Europe, North America and Asia as of the third quarter.

Other companies are raising funds in the decarbonization space as well.

Earlier this month, global asset manager Galvanize raised $370M in equity, bringing total investment for its decarbonization fund to roughly $1B. The fund will similarly target and acquire underperforming assets and add value through decarbonization improvements.

On the lending side, Nuveen raised $785M in commitments in 2025 for its Nuveen C-PACE Lending Fund III. The fund aims to provide financing for commercial real estate sustainability projects.

Commercial and residential buildings are responsible for roughly 40% of the global greenhouse gas emissions, according to the United Nations Environment Programme.