Sustainability and energy efficiency are critical to ensuring longevity in real estate and avoiding premature obsolescence. However, more owners and investors are realizing the long-term importance of addressing climate risk and resilience in their portfolios. Failure to focus on these issues can result in damage to assets from increasing frequency of storms, higher turnover of tenants, inability to lease spaces, and a negative impact on investment returns.
ULI Greenprint Annual Performance Report Vol 10 – Health and Wellness Building Certifications: Kilroy Realty
While tracking health and wellness metrics and their impact on the built environment is still an evolving practice, many Greenprint members are reaching for certifications such as WELL and Fitwel that push owners and occupants to consider the impact buildings have on occupants beyond traditional energy use and sustainability.
Water efficiency remains a relatively easily achievable goal for both companies continuing down a path of sustainability and for those just starting. Greenprint members reported over $2.3 million in water efficiency investments in 2018.
ULI Greenprint Annual Performance Report Vol 10 – Social Equity and Workforce Development: Prologis Community Work Force Initiative
Though ESG is what broadly defines many Greenprint members’ sustainability strategies, integrating the social into business practices often comes with a distinctive set of challenges.
As more cities enact clean energy plans and pass mandatory benchmarking ordinances, building owners and investors across the country are increasingly looking toward net-zero energy (NZE) as their next goal to continue reducing carbon emissions in the built environment.
Greenprint members reported investing over $300,000 in 2018 in tenant and occupier engagement. While this number may seem small in comparison with other project investments, the cost of labor and efforts put in often results in a return on investment in the form of benefits such as lower tenant turnover, fewer vacancies, and rental premiums.