By Gabriella de la Vera and Steví Greene – Sustainability Consultants
Sustainable Investment Group (SIG)
Every day, commercial property owners and managers balance operational requirements with tenant needs and comforts. Ensuring their buildings meet sustainability and health standards, such as LEED, WELL, and Fitwel, is often a key part of their strategy.
To stay at the forefront of industry trends, we sent two of our Sustainability Consultants to the 2024 BOMA International Conference. Based on their observations, here are the top 3 must-know trends for property stakeholders:
1. Embracing Innovation and Technology
Staying updated with technological advancements like smart building systems and data analytics is crucial for enhancing efficiency and tenant experiences. The conference highlighted the need for new technologies to drive energy efficiency, reduce costs, and improve building management. Key areas of focus include:
Enhanced IAQ and Monitoring: With people spending 90% of their time indoors, poor ventilation is a significant issue, causing 57% of all sick leave. Improved indoor air quality (IAQ) is crucial for productivity and reducing absenteeism, saving businesses up to $6,500 annually. Proactive measures in Indoor Environmental Quality (IEQ), including CO2 monitoring, ensure a healthier environment for occupants and property owners.
Electrification: Electrifying building equipment is essential for reducing emissions and improving energy efficiency. Replacing fossil fuel-based systems with electric alternatives helps buildings comply with regulations and enhance performance. Innovations in electric HVAC systems and heat pumps are leading this transition.
Climate-Related Risk Preparedness: Preparing for climate-related risks is vital for protecting properties and attracting tenants. Innovations like CoolSeal coatings and floodproofing measures improve building resilience, reduce operational disruptions, and lower insurance premiums. Additionally, in residential settings, heat mitigation strategies can yield up to $50 per reduced degree in rental premiums and over $1,000 in energy savings per building.
2. Focusing on ESG Goals
Sustainability was a major focus, with discussions on integrating ESG criteria into property management. Key points included:
Investor and Regulatory Requirements: ESG data requirements are increasing as investors and regulators demand higher performance. Buildings must demonstrate strong ESG performance to attract investment and comply with local standards like New York City’s Local Law 97 and California’s CA SBs 253 and 261.
Green Building Certifications: Certifications like LEED, WELL, Fitwel, and BREEAM highlight a commitment to occupant health and well-being. These certifications highlight features such as healthy food access, efficient operations, and strategic location, which positively correlate with higher tenant satisfaction and Net Promoter Scores. These certifications make properties more attractive to tenants by ensuring they meet high standards of sustainability and health.
3. Enhancing Tenant Amenities and Well-Being
Adapting to the changing needs of tenants was a key topic. Property managers are encouraged to reconfigure buildings to create flexible workspaces.
Growing Demand for Amenities: From 2021 to 2024, the importance of amenities like bike storage rooms, exercise facilities, access to nature trails, green spaces, showers, and changing facilities has increased considerably. Meeting these demands can attract and retain tenants while promoting overall well-being.
Investor Demand for Healthier Buildings: Investors are pushing for healthier buildings, with 89.5% of new investors now requiring features and methods to track related data. Buildings with wellness certifications not only contribute to a healthier environment but also attract premium rents, averaging 4.4 to 7.7% more per square foot than non-certified properties. Additionally, well-maintained trees, outdoor green spaces, and shading are associated with 7% higher average rental rates for commercial and residential buildings, making them a valuable investment.
How SIG Can Help You Stay Ahead
At SIG, we help various clients, including property managers, architects, developers, and building owners, in making their buildings more sustainable and efficient. Here’s how we can support you:
Simplifying Certifications: We guide you through LEED, TRUE, WELL, and Fitwel certifications, making the process easier and helping you enhance your building’s health, sustainability, and market value.
Improving ESG Performance: We help you strengthen your environmental, social, and governance impact. By meeting standards like GRESB, GRI, CDP, SASB, and TCFD, you can attract investors and tenants who value sustainability.
Enhancing Building Efficiency: We offer services like Decarbonization, Commissioning, Retro-Commissioning, and Energy Audits to improve your building’s efficiency and lower emissions. This leads to cost savings and helps you achieve your sustainability goals.
Unlocking Financial Opportunities: We help you access green financing options such as the Inflation Reduction Act, PACE Financing, tax credits, and grants. This funding can support your sustainable projects and improve your return on investment.
The commercial real estate landscape is evolving, with sustainability, health, and flexibility taking center stage. Green building certifications enhance well-being and command higher rents. Embracing technological innovations and flexible spaces is essential for meeting zero-emission goals and attracting tenants and investors. By addressing these factors, property owners can create healthier indoor environments and ensure long-term success.
Ready to take the next step towards sustainability? Partner with SIG to enhance tenant satisfaction and future-proof your property. Contact our Vice President of Sales, Asa Posner, at asa@sigearth.com to learn more.
Resources:
Benchmarking Success: How to Measure and Improve Building Performance To Achieve ESG Goals
Developing Resilient Buildings With Risk Management Strategies
The Big Zero: Pursuing Whole Building Decarbonization In CRE
Navigating Current and Future GSA Green Leasing Requirements
Seeing Results: Implementing and Measuring The Impact of Healthy Buildings
The Climate X Health Nexus: Greening Buildings For Healthier People
Gabriella de la Vera, is a Sustainability Consultant at Sustainable Investment Group (SIG), where she specializes in Wellness projects. Gabby plays a key role in managing Fitwel and WELL certifications, ensuring sustainable practices are met across her projects while supporting teams in achieving green building standards. Reach out to Gabby here.
Credentials: LEED AP O+M, LEED AP ID+C, LEED AP BD+C, Fitwel Ambassador, ActiveScore AP
Oakwood, GA
Steví Greene, is a Sustainability Consultant at Sustainable Investment Group (SIG), where she skillfully manages LEED, Fitwel, and various green building certifications. With a strong focus on creating healthy, sustainable environments, Steví is committed to enhancing the well-being of individuals and communities through her work. Reach out to Steví here.
Credentials: LEED AP ID+C, Fitwel Ambassador, Active Score AP, TRUE Waste Advisor
Greenville, SC
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