The negative impact of COVID-19 on the commercial real estate industry changed many courses and desires for tenants and landlords, but one factor remained the same. The call for increased eco-conscious, i.e. “green” spaces, has yet to falter. In fact, it’s on the upturn. As time progresses, both tenants and landlords have become increasingly aware of the benefits of green features in commercial spaces. Not only do they contribute to a more sustainable and brighter future for the world, but they can save both parties some serious cash over time.
The case for sustainable commercial spaces
LEED-certified buildings set the standard for green commercial real estate spaces. Founded by the U.S. Green Building Council, the LEED certification program celebrates their belief that “better buildings equal better lives”. The USGBC incentivizes buildings to aim for their platinum, gold, silver, and certified awards, which are received based on how many green features and strategies a building boasts.
Spaces awarded LEED status cite a reduction in maintenance costs by about 20 percent. But sustainable spaces don’t just see increased profit in the day-to-day of things; landlords and owners of green spaces have an advantage in today’s market. Since the demand for eco-conscious spaces is projected to grow, green features have become desirable among potential tenants. On average, tenants are willing to pay more for spaces with green installations, like solar panels and other energy efficiency efforts. It’s a win-win for both parties: landlords make a solid profit, and tenants lower their maintenance costs while knowing they’re contributing to a better environment — and a better future.
Moreover, the public has weighed in on how green buildings impact them on a personal and physical level, and the results are astounding. The USGBC notes that green measures, like improving indoor air quality, can reduce symptoms of asthma, allergies, and even depression and stress. When a large portion of society is spending the majority of their time indoors, the health benefits associated with green buildings are nothing to scoff at. The case for sustainable commercial spaces not only affects the trajectory of our planet but our health and wellness. Tenants and landlords would be wise to keep these benefits in mind moving forward.
Top eco-friendly features to watch
So, just how are buildings making the switch to sustainability? LEED-certified buildings in New York City are setting the standard for eco-friendly commercial real estate spaces. For instance, Greenwich Lane was built from the ground up with sustainable materials, recycled supplies, and high-efficiency LED fixtures. The residential building also requires zero potable water as a result of its rainwater collection system. The Hearst Tower, another LEED-certified property, became the first commercial building in NYC to host its own compost program. This change has significantly reduced the building’s food waste and landfill contribution. Yet another prominent green building, 10 Hudson Yards, controls the heat of the building in an innovative way. The building is equipped with a tubing system that moves cooling liquids all throughout the structure.
Overall, buildings that achieve success in their quest to become more sustainable take advantage of what nature has to offer them. Whether it’s a creative, energy-saving use of natural lighting, opting for recycled materials and natural cleaning supplies, or discovering innovative ways to warm and cool spaces, there’s no telling what future green spaces have in store for us.
How can tenants and landlords move towards a sustainable standard?
If one thing’s for certain, it’s that progress needs to be made — and the best route is through communication and collaboration between landlords and tenants. Owners of commercial spaces have an advantage, to be sure. They’re the ones calling the shots, and if sustainability is a priority, they can reach that goal with fewer hurdles and less pushback. Even so, the tenant-landlord partnership has the capability to reach those same goals. Cooperation will be the key to unlocking possibilities in widely available sustainable spaces. Without demand, landlords lack the incentive to bolster their spaces with eco-friendly amenities. And as the demand from tenants increases and discussion opens, there is no telling what both parties can achieve. The progress towards sustainable agreements may be slow. However, the end result will be something we can all look forward to.
At REDHANDED, it’s our goal to connect like-minded tenants and landlords, without the added complications and costs of brokers. Our platform allows you to negotiate on your own terms to find a space or tenant that meets your needs. Tenants can browse hundreds of spaces with sustainable features, while landlords can easily advertise their valuable eco-friendly amenities. No matter what you’re searching for in the commercial real estate world, we’ll help you find it.
Sources:
https://www.usgbc.org/press/benefits-of-green-building
https://www.propertyshark.com/Real-Estate-Reports/greenest-buildings-new-york-city/
