The pandemic has brought in a lot of changes in the CRE industries. Thankfully, the workers are ready to work as things return to normal.
But now the tenants are looking for more energy-efficient and sustainable buildings. This is because of the reason as why the properties and currently being evaluated for the current sustainability strategy.
Most commercial teams already find that the buildings present unexpectedly poor environmental conditions. As a result, they need the proper equipment and system required for the necessary levels of efficiency.
Either way, bringing sustainability to commercial real estate buildings will be a great strategy to regain occupancy. There have been studies that indicated that 2023 would be the year when the tenants will be looking for more energy-efficient buildings.
Thus, it is now time for the investors to consider this factor and bring back the energy efficiency in the building to ensure its better occupancy. The guide will help you know how to bring in sustainability.
Why CRE needs to go sustainable?
Real estate had got a significant consequence on the environment around it. For example, buildings currently contribute to about 40% of carbon emissions globally.
At present, factoring all the construction projects over the next 30 years, the emission from the embodied carbon will be equal to those from operations in 2050.
The sustainability issue and challenges within the industry clearly demand action as soon as possible.
The expectations for energy efficiency in the industry are well established with the tenants, including sustainability in the strategies. This means that emissions will be reduced in both the building and the operations.
Also, there will be an increase in the interest in more sustainable and durable materials for reducing the ways and ensuring better project sustainability.
The millionaires who currently make up the largest generation of the labor force are now helping to drive a better social environment and corporate governance by measuring the social impact and accessibility of a business.
Now, so many employees have shown the ability to perform from anywhere. Thus, employers must serve the total person by offering them a wellness and health program that will be attractive and support talent recruitment and retention.
It must also not be surprising that the office’s primary post-pandemic focus will be on air flow within the buildings. As a result, there are a lot of measures for qualifying the building codes.
The efforts need to focus on sustainability and then use it in the best way, ensuring everyone stays safe, and the emission from the buildings is reduced dramatically.
Energy efficiency is the top goal.
In the CRE industry, sustainability is ever-growing, primarily as the government has implemented more green buildings. Thus, the tenants now demand better sustainability and energy efficiency in such properties.
Thus, this indicates that the tenants and the industry will prioritize energy efficiency in 2023. This was not surprising because energy management and the respondents are the top areas one plan to enhance.
This followed a trend from the last year’s report when energy efficiency was the top choice for 2022.
Comparing the sustainability priorities of both years will show some shifts in health and wellness. Still, it is among the top five priorities, but it has fallen to number two. The number getting green building certifications has received a better focus.
However, remember, the shift is okay. The best explanation is that the job has been done significantly over the last ten years.
Even every five years, there are changing expectations around health and wellness. It is done at the fitness centers, healthy eating programs, programs in the building, etc.
The changes are made now and then. CRE is now at a place where they are meeting all the expectations in many of the buildings.
Sustainability priorities for 2023
Carbon neutrality has already entered the priority list for sustainability in 2023. However, it is not surprising, given the respondent’s focus has stayed on energy efficiency over the past years.
Commercial buildings now produce about 40% of the global carbon emission, which makes the environment one of the top Global producers of carbon.
Reducing it will be challenging but will help create opportunities for the CRE owners. The CRE building market size will include material construction, equipment, and operations that could grow by 38% by 2030.
On the path to sustainability, the CRE professionals will create value by investing in next-generation technology and replacing the equipment with all the lower mission models.
Thus, this will help boost energy efficiency. However, there are also some other opportunities and challenges that lie ahead.
Regarding zero building and ESG reporting, measuring energy use at a minor level of detail will be challenging. But you can do it at a granular level.
It would help if you were efficient enough to manage things. If you can manage the energy at the granular level, then the next channel will be to reduce it all. This will be challenging, but things can be done with a proper plan.
Whether your property is on the path to zero carbon emission or you are considering using clean energy, the team needs to establish concrete ways of meeting the sustainability goals at the end of the day.
Irrespective of how much you can reduce your need to get clean energy into the building. Thus, it would help if you found a way to procure it.
Use technology to meet sustainability goals.
There have been a lot of technology upgrades in the CRE industries in the last 5 to 7 years. It has now started to adapt to the new world.
Thus, you can now easily find automation and intelligent buildings working to save the industry’s future. But unfortunately, this means the property managers and owners need more information at the fingerprint than before.
A report revealed that the areas focusing on enhancing tech in 2023 are similar to last year. The research indicates that the suggested good teams focus on running better buildings in the years ahead.
The focus will remain on tenant experience, building equipment, maintenance, operations, and energy management or sustainability.
Considering these goals, energy management or sustainability is now considered number 3. But, at the same time, the other property teams can also view the industry peers to know about the places for investing and include technology for sustainability.
Sustainability in commercial real estate
In CRE, the investors have no choice but to face current and future climate change challenges. Therefore, they need to induce sustainability challenges.
CRE is now bringing in numerous rules and regulations that will allow it to continue to focus on the local and federal governments. They are policies that will push the property owners and the operators to meet the sustainability requirements.
It will also pressure the investors to back up the efforts to go green. It is now time that one start to do things differently and see the tenant demand for more sustainability in commercial real estate.
This can include everything from energy-efficient workplaces to a healthy environment.
Green real estate leases
Agents are now specialized enough in improving the accessibility of the property by going green.
The green reuse shows that leads will contain everything to help the tenants and the landlords meet the environmental goals. Besides, there can be additional leases that can significantly increase the eco-friendly aspect.
The agents can also consider adding air quality standards to the building to minimize pollution. Besides, individuals can use the heating and air conditioning system as per the standard to improve energy efficiency.
Based on the energy use of the building, there will be measures to minimize unnecessary greenhouse gas emissions.
The green real estate leases can also include alternative transportation options. For example, the agents can develop sustainable leases for businesses near train or bus stations to minimize transportation emissions.
If you are ready to use sustainability in your building project, you must know things that can be done on time. If you are worried about the same, consider contacting Private Capital Investors for expert help. They have got years of experience.
These professionals understand the requirement and can ensure to provide the best support possible. So whether you need to find or get advice with your commercial real estate, you will get the help.
The experts are knowledgeable and certified. They will guarantee you can get access to the best support possible. In addition, you can connect with them to get the best information about the strategies that will work well for business sustainability.