Real estate investors see rising demand for healthy buildings – report | News
Real estate investors are expected to increase their demand for assets that prioritize the health and wellbeing of residents, according to a report.
The report, titled A New Investor Consensus: Growing Demand for Healthy Buildings, attended by global real estate investment managers and stakeholders managing $ 5.75 billion in assets, found that 92% of respondents expect demand for healthy buildings Buildings will increase over the next three years.
The study, which was coordinated by the United Nations Environment Program’s Financial Initiative (UNEP FI), the Center for Active Design (CfAD) and BentallGreenOak, found that 89.5% of respondents found COVID-19 to be of importance to health Investment decisions has increased This signals their intention to improve their wellness-related asset management strategies in the coming year.
The need for healthy buildings has increased steadily over the past ten years. Nearly 70% of respondents said they saw increased demand before the pandemic, the report said.
It underscores the growing awareness among investors of the “importance of health and wellbeing to their environmental, social and governance (ESG) strategies” and the link between building design and function and personal and societal health and wellbeing.
“This has resulted in a more concerted focus on the S or social component of the ESG, which has traditionally lagged behind the clearer pillars of environment and governance.”
Currently, only 53% of respondents say they are largely integrating health and wellbeing into their ESG strategies, and 42% say they have started, which the report says leaves significant room for growth.
Amy Price, President of BentallGreenOak, said, “Responsible real estate investors have come to believe that the buildings we manage for our clients are part of the critical infrastructure cities rely on for the resilience, health and wellbeing of their citizens will.
“Where environmental excellence is rightly used increasingly for our industry, our fiduciary responsibilities increasingly lead us into a new area that requires addressing the multitude of social factors that affect the value of assets. Our collective experience with the first modern pandemic in our lives shows us how closely investment performance is linked to operational excellence, tenant engagement and community relationships. “
Joanna Frank, President and CEO of CfAD and its Fitwel Certification System, said, “This study quantifies for the first time the industry’s focus on health and wellness in ESG investment strategies.
“We expected the results to show strong demand for healthy buildings, especially in light of the pandemic, but it also pointed out the lack of consistency in measuring and reporting the impact of these initiatives.
“There is a clear case for standardizing benchmarks to track performance. Certifications like Fitwel can provide a framework, but we need to keep pushing for widespread adoption so we can track the measurable impact. “
Eric Usher, Head of UNEP FI, said: “We know from our members that there is a broad consensus for financial actors to think holistically about the impact they make through their capital allocation decisions and that paying attention to societal goods is part of the Value is creation process for companies and real estate.
“This study confirms that health and wellness are now an integral part of this social agenda and must have an impact on the design and management of real estate.”
As reported in the latest edition of IPE Real Assets, COVID-19 has highlighted the importance of health in office buildings.
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