Sustainability and environmental safety have significantly impacted over the last few years. Undoubtedly, all industries are working hard to reduce the harsh effects on the environment. Besides the significant initiatives from the Biden administration, along with the increased consumer interest in the green movement in CRE, things have become a lot more strict, and more people are now paying attention to the impact things are having on mother nature. Be it the food industry or any other big corporations, everyone is taking moves to avoid any concerns and take proper measures in the current scenario to prevent any further complications in the coming future.
There are measures and steps that industries will take now to decide how the future will roll out and how safe the environment will be. Here the guide has covered the green movement in Commercial Real Estate. It will help you get a better idea. Also, the details mentioned the trends of the industry.
Net-zero by 2050
The social, environmental, and governance issues undoubtedly are among the hottest topics one can hear about in the corporate world. The companies are all involved in assessing and addressing the climate crisis. As per the reports released by the data-driven EnviroLab, the number of commitments for reaching a net zero by the businesses and the municipality has been doubled in less than a year. There are about a hundred companies across the globe, including the major ones like the fortune 500 companies, including Facebook, Microsoft, Virgin Airways, etc. They have recently pledged to be net-zero by 2030 and beyond that.
A thing to note is that they are not the only ones dedicated to reaching the goal of decarbonization. They are different from other commercial real estate companies, too, like the real estate investment trust, which is working hard to do its part and address its carbon footprints. Mentioned here are the companies who are making a move on the greenway.
Green Movement in Commercial Real Estate big players
Even before the green movement had started, the company had been a strong leader and worked towards the environment’s safety. In fact, in 2019, they have already achieved 80% operations, with 92% of the energy coming from renewable sources. Besides, the company is also dedicated to using environmentally friendly innovative building designs for cooling, heating, and powering the facilities.
2. Digital Realty Trust
It is yet another data-centric firm that is well recognized in the CRE industry. They have been putting their efforts into the green revolution. As of now, they stand 27th on the environmental protection agency’s top hundred green Power partner list. In the year 2020, the company achieved carbon neutrality, wherein 72% of the building operations were conducted on green leases.
3. Kilroy Realty Trust
The company made a significant impact in the year 2020. By achieving carbon-neutral or net-zero operations, they had 68% of their portfolio LEED-certified, while EnergyStar rated 69%. The company has managed to ensure multiple electric charging stations are installed at its property which allows the employees to have convenience in making use of the electric vehicle while coming to the office. It is a great movement that is there to help save the resources and also the environment.
4. CBRE Group
The company, as of now, manages about 2.7 billion square feet of commercial space globally. Besides this, they also keep an eye on the utility spending of the clients through its energy and sustainability programs. It quotes about $1.4 billion in utility spent across 8000 + locations. The process now significantly results in significant energy savings and emission reduction.
Just during the start of 2021, the company, one of the largest investment firms globally, joined the net-zero asset managers initiative. Also, they had active participation in climate action hundred plus to reach net-zero by 2050. It partnered with Temasek earlier. Also, they are planning to raise about $610 million for investing in green offerings, which will further include renewable powers to sustainable ETFs.
6. Marriott International
It is one of the major companies that has successfully joined the list. They are finding an initiative to go green by the year 2050. Some of the programs herein include eliminating single-use plastics. It will help save about 500 billion plastic bottles thrown into landfills. The company is also working hard to tackle food waste carbon emissions and use clean energy resources through different programs.
The new outlook on Green Way
It is estimated that real estate accounts for 30% of greenhouse gas emissions. It is quite a considerable percentage that needs to be tackled right at the moment to avoid any future disasters. The SEC is working hard to see that the public companies disclose information about the climate risks and the social, environmental, and governance criteria. Some states, including California, have already passed laws that state that when certain square footage for carbon emission is exceeded, the company will have to pay tax. With this new policy, there is a possibility that things will get better, and with the CRE, we will work hard to reduce the impact on mother nature.
Thankfully there are tools, resources, and technology that can help you achieve these goals. There is still hope for the companies to jump on board and go through the greenway of operating and saving the environment.
Sustainability trends in CRE
There are different things a CRE industry can do to bring in the new age of sustainability.
Space design and integration
Although you might not consider the interior building space or the functions, they too come under the green design. Most companies are finding ways to increase productivity. The companies are willing to optimize the office spaces to increase employee engagement to meet the objectives and get higher revenue. The demand for mixed-use property for sale has now become relatively high. The real estate investors and builders are coming up with flexible spaces that include lounge-like waiting places, active meeting rooms, and workstations. The flexible space will help approach things better and will attract good investment.
Undoubtedly there is an excellent requirement for employee wellness in the workspace. The greatest challenge now is to invest in wellness initiatives in a cost-effective manner. No doubt a building design can significantly impact, but it can also help create wellness friendly environment. For instance, maximum natural lighting and proper ventilation is something that businesses can take care of to reduce any artificial sources in the industry and boost productivity.
Solar power investments have increased tremendously. This is because lawmakers, property owners, and others are continuing to develop ways to use solar power. Thus it has reduced expenses for generating energy. The workspaces and the commercial buildings consume about 30% of the energy globally, which is quite hard to overlook as far as environmental concerns are there. It is the only reason the CRE developers are shifting towards sustainable building solutions to support the green movement while also carrying out their regular operations. The recent trend has suggested the increasing market demand for sustainability. So, investing in green initiatives can bring sustainable financial rewards while also helping in saving the planet.
The property can rebound after a disaster. In recent history, it has been seen that climate resilience has taken a foothold. The developers are now taking the resilience methodology a step ahead by using the disasters to improve the performance of the building during restoration. From this standpoint, the concerns will help strengthen the property after the storm’s impact while also it will reduce maintenance work in the future.
Besides this, the investors are also considering using durable products that come with properties that can efficiently handle climate change. Also, they are reducing the potential losses and causes, making the company more resilient to environmental risks. Also, it keeps all of the investment in mind ensuring that aspects like manufacturing can be controlled.
The CRE industry is working hard to bring in movement and save the environment. The companies like Private Capital Investors are taking all the measures to reduce the pressure on mother nature. They can provide you with precise insights about what’s going on in the industry and help you invest in the right place. They are here to help the new people in the industry choose those properties that will bring change in the future and support a good cause. When you have professional assistance, things will be smoother and more convenient. Indeed, the expert will stay strong by your side and help you make a firm place in the market.