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Embracing Sustainability In Commercial Real Estate: A Win-Win For Investors And Tenants

By April 24, 2023No Comments

In recent years, the demand for high-quality commercial real estate has been on the rise. Focused locations with strong reputations have solid business opportunities that require attention.

Due to this increased demand, it has caused more than ever to available spaces to be of high quality. This includes more residential properties than ever before, as well as larger space properties that make great use of open space and public transportation accessibility.

Because of this increased demand, and the cost associated with it, investor appetite for space is at an all-time high. Furthermore, tenant preference for certain conditions in office space and storage facilities has continued to grow in spite of decreased funding sources.

This article will discuss ways a sustainable commercial real estate market can help both investors and tenants meet their needs without compromising quality or value.

Implementing sustainable improvements

As more and more places become sustainable, and home owners increasingly institute improvements such as solar panels or installation of geothermal systems, the demand for improvements in buildings increases.

In fact, there has been a surge in renovation projects over the past few years as people look to improve their personal space while saving money on energy bills.

Many renovation projects include installing energy efficient appliances and systems, or working with existing systems such as coolers or window security systems.

By helping update system equipment and improving comfort within buildings, energy efficiency measures can save money in the long run. Investments in newer technology-deficient systems will not save enough energy to be noticeable during the day, especially when located inside a building.

This is where solar power panels come into play. By having some small solar power panels on each building exterior, they can tell authorities if it is being used outside or inside.

Using environmentally friendly materials

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

More and more commercial real estate projects are using sustainable materials in construction. These materials include cold-pressed cotton lumber and glass for the windows.

These materials are used in ways that enhance the beauty of a building or improve safety and efficiency. By using these materials in construction, you are helping to preserve the environment and your investments over time.

By selling your property with generous incentives such as below-grade parking, you are establishing yourself as an ethical buyer who cares about your neighbors.

You are also setting a good example for your future tenants, who will hopefully follow your example and be responsible with their funds. If they see a nice building like yours on social media, they will likely consider renting it out because of the reputation of the property.

Reducing energy use

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

Two main ways companies reduce their environmental impact is by reducing production and purchasing.

Reducing production means using more electricity, packaged or not. Using fewer lights, computers, phones, etc. would decrease this energy use.

Using more natural gas or oil for operations or products instead of electricity is another way to reduce energy use. By using less electricity, they are still producing something but with a lower power bill than if they had used a computer or phone!

Reducing the amount of packaging that you need to buy reflects in reduced overall energy usage. Whether it be buying things online or from stores, having to buy fewer things makes them reduce demand for resources which affects the environment in many ways.

Offering green leases

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

Green leases have become increasingly popular options for tenants. The term green lease refers to a contract that gives the tenant control over how energy is used in the apartment and how it is paid for.

The term comes from the fact that the landlord will only charge an average amount of energy per day to run the place, and that he or she will pay for only what they use.

This is known as control of their own energy usage. As a tenant, you have power to demand lower-quality renewable resources in your apartment, such as solar panels. You can also choose whether or not you want to help pay for them.

You also gain more control over when things are used, as using renewable resources only goes during daylight hours. These attributes say something about your personal sustainability, which tenants love.

Encouraging employees to take public transportation or ride share

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

Choosing to live in a walkable, bikeable, air birtle community is increasingly popular as an investment and lifestyle choice. If you can afford it, you can also choose a rural or suburban location with access to transportation networks.

Many new residential developments are located in highly bicycle capable areas such as downtown Vancouver or New York City. If you are looking for a safe, vibrant neighborhood where you can make small transactions without craning your neck, there are plenty of places for you.

If not, chances are you will never have to see their property and they will be happy that you chose a good location that was comfortable for them.

Conserving water use

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

One of the biggest challenges in commercial real estate is conserving water usage. To properly sustain a business, a large amount of water must be used.

To help conserve water, many properties are requiring that stormwater be managed and reused. This is an expensive way to manage stormwater, but it can save a lot of precious water.

Another way to reduce water usage is to limit or avoid washing large quantities of dishes, etc. Since more water is used for rinsing dishes, less is needed to be washed.

Finally, small changes such as using less liquid product in general or avoiding the most wasteful ones can save a lot of water.

Harvesting rainwater for use on site

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

As the modern world is built around water, it is important to continue conserving and utilising what we have. Through rooftop systems or cisterns, water can be harvested for use on site.

There are a number of sites around the world that use rainwater for irrigation, cleaning, and as a liquid source. Some even use it for drinking or flushing toilets.

The properly constructed cistern system will hold enough water to last the building its occupants several years. During the dry months, residents can just add enough water to their tank to keep it full.

If ownership changes, the new owners can take advantage of this system by using the existing infrastructure.

Using compostable materials or composting food waste

Embracing Sustainability in Commercial Real Estate: A Win-Win for Investors and Tenants

Through sustainable practices such as composting food waste or using environmentally friendly materials, we can lower our dependence on fossil fuels. Carting away tons of food wasted from the grocery store is a big deal!

In the case of real estate, solar panels and/or wind turbines can help reduce electricity costs and increase the value of your property. By having some solar panels or a rooftop system, you already have some green infrastructure helpaiding in sustainability.

By having a system that includes wind turbines or a large solar panel system, you are already in support of climate change and sustainability. You are also helping your investment return as an fair rate of return on your property.

You are also helping your tenants improve their sense of place and quality of life with these amenities.


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