As sustainable real estate industry discussions converge around themes of decarbonization, it may be easy to question the value of holistic certification tools like LEED or WELL. After all, realized embodied and operational carbon reductions can be difficult to measure and are often overshadowed by other facets of a real estate’s sustainability strategy. But a real estate market healthy building certification is a powerful, integrated framework that addresses critical metrics that drive real estate performance. And it is well positioned to accelerate sustainable development and enhance human health and wellbeing.
The WELL Building Standard focuses on 10 core concepts that have a major impact on people’s lives, including air quality, water management, nourishment, movement, lighting, thermal comfort, acoustical comfort, indoor environmental quality, building materials, mental health support and community integration. The standard has gained momentum with the pandemic, attracting companies like Dropbox and Salesforce that want to communicate their commitment to wellness and provide spaces that prioritize health. The number of commercial and multifamily buildings enrolled in the program has doubled in the past two years, according to IWBI. Click here https://www.sellmyhousefasthoustontx.com/we-buy-houses-lancaster-tx/
As more and more companies prioritize employee wellness, the demand for healthy properties has continued to grow in the resiliency and productivity markets. Currently, WELL’s core market consists of offices, retail and hospitality, but the program has a growing presence in industrial and residential buildings.
Similarly, Fitwel has seen a growth in enrollment since the pandemic. The program was originally created by the CDC and U.S. GSA in 2011 and was piloted in government buildings. It was later taken over by The Center for Active Design, a nonprofit organization, and the system now offers both design and built certifications. Unlike WELL, it’s possible for both new and existing projects to earn Fitwel certification.
Both programs offer a significant competitive advantage for property owners seeking to attract tenants. The public image of a certified property signals to occupants that the owner has gone above and beyond to promote health and sustainability, which can have an impact on retention rates. For instance, Kilroy signed a deal earlier this year to sell The Exchange on 16th in San Francisco, a WELL-certified office building, to file-sharing company Dropbox for more than $1 billion, setting a price-per-square-foot record for the city’s commercial real estate.
MIT’s Real Estate Innovation Lab published research in 2022 that found that, all else being equal, healthy building effective rents transact between 4.4 and 7.7% higher than their unhealthy counterparts. These premiums are independent of a variety of factors, such as location, building age, renovation status and submarket.
Despite the challenges of the current climate, the long-term prognosis for healthy buildings remains optimistic. As the world returns to normal, it’s important to remember that healthy buildings are essential to a resilient society, and that the benefits of these systems go far beyond energy efficiency and water use reductions. And IWBI’s continued investment in the future of its healthy building offerings shows that it is committed to staying ahead of the curve and delivering the best tools for real estate leaders.