Sustainability and CRE: 4 Things to Keep Your Eye On

When asked about sustainability, most people immediately think of energy consumption and savings. However, energy is just one small component of sustainability. Sustainability is an overarching spectrum — and while it’s true that focusing on the regulation of energy is a necessary piece of the puzzle, as it impacts the overall operating cost on a daily basis, it’s important to remember to pay attention to the other pieces, as well.

Let’s take a closer look at sustainability as it pertains to CRE and these 4 trends to keep your eye on.

1) Data on sustainability is shifting from simply reporting to having meaning

Throughout the past decade or so, there has been a marked increase in corporate responsibility and sustainability reporting. In fact, the industry has quickly gone from having too little data and information on sustainability to almost having an overload of information. This information is now being used to deliver quality metrics — information on what is crucial in making CRE investments. Keep watching to find out more about what factors are material in CRE sustainability.

2) Real estate will be managed in an increasingly volatile environment

When it comes to commercial real estate, resilience is thought of as a mindset of how to mitigate risks by anticipating upcoming issues and protecting investments from potential negative impacts. The importance of resilience is catching on in both the public and private sectors, and will certainly be a trend to watch and study in the upcoming years.

3) There will be increased expectations of performance from the market

There are a number of factors that have led to a higher expectation of performance throughout the market. One of the biggest global incentives toward sustainability was the Paris Climate Accord, signed into effect by more than 200 countries in 2015, with an ultimate goal of a nearly zero carbon global economy within this century. With buildings emitting nearly one third of the world’s carbon dioxide levels, it’s clear that this accord will have a tremendous impact on global CRE as it shifts toward sustainability and environmental responsibility.

4) Smarter intelligence in CRE

The sheer volume of date we now have — whether operational data, environmental data, or financial data — is completely transforming and reshaping CRE management and analysis. This shift is impacting how buildings are managed and operated. In addition, this new intelligence is leading to an increase in technology and smart amenities that are available in CRE. In fact, with how rapidly the industry is changing, it’s becoming harder to even keep up with all of the technology that is on the market! Stay tuned to see how this advanced intelligence is incorporated in the industry.

Anyone who is experienced in CRE, especially owners, will tell you that sustainability is becoming more central to the core of CRE, and the trend doesn’t appear to be slowing down. Today’s industry realizes the important part they play in protecting our environment. It’s more than just “going green” — it’s corporate responsibility.