Property’s growing social conscience
A new generation of tenants have a growing awareness their environment can have a fundamental impact on general health – physical and mental. If we enjoy the spaces we inhabit, then our productivity rises, too – good for society, good for the economy. But good for property owners’ bottom line? Health and wellness have become a core agenda item in the wider sustainability conversation.
But investors are in the business of money-making and initiatives to increase natural light, provide cleaner air, ensure energy efficiency and keep tenants active, often do not come cheap. So, can the ‘S’ factors of ESG deliver the value-add to offset costs? Although the data set to make that correlation is still immature, there is growing segment of the market with a gut feeling that in the long-term, the current health and wellness focus in real estate will yield financial results for capital owners.
Think of it this way – more and more tenants will expect landlords to deliver on all aspects of sustainability – social and environmental – and ultimately, they pay the rent.