Employee performance and productivity are critical variables to your company's operating income and profitability. High performance and productivity are facilitated by engagement. Quite simply, engaged employees contribute more to the organization and the bottom line. Commercial real estate firms like Colliers International reinforce that healthy buildings are significant contributors to employee productivity, which has been stagnant in the United States since the Great Recession and is experiencing the lowest annual growth rate since World War II (1.1%), according to the U.S. Bureau of Labor Statistics.
In a world of new corporate tax cuts, rising interest rates and a stable economy that may be on a long plateau, real estate investors and managers wonder how property values can continue to increase. Besides reaching into our own noggins, we looked at what industry analysts from Deloitte, Cushman & Wakefield, JLL, Memoori, the European Commission and the U.S. Department of Energy have to say on related topics. According to the European Commission report on Macroeconomic and Other Benefits of Energy Efficiency, a smart, higher-performing building can conservatively add $0.10/sf or as much as 11.8% in lease value. and it can ultimately yield 5% to 35% higher sale values.
Lighting in commercial buildings can significantly impact the "triple bottom line," improving the planet's sustainability through energy efficiency and boosting organizational profitability. Though, most importantly, lighting can improve the wellbeing of the people who occupy the space. The WELL Building standard includes lighting as one of seven core concepts of health. LED lighting projects have been a popular building improvement in recent years, for energy efficiency returns alone. Did you know that advanced lighting controls and automation can add efficiency and health benefits to lighting programs?
The WELL Building Standard provides important guidance around the interests of human health, wellbeing, productivity and sustainability with a focus on the occupant. It includes benchmarks, goals and compliance requirements for owners and other building stakeholders. The WELL Building Standard covers seven core concepts of health: air, water, nourishment, light, fitness, comfort, and mind – for all types of buildings, including commercial office, retail, industrial, residential and restaurants.
Our last blog post on the WELL Building Standard discussed how building owners can maximize their "comfort" concept score for WELL certification. This post, the second in our series, is focused on the why the WELL Building Standard is so important for the "indoor air quality" (IAQ) environments of the future and how 75F can help you deliver improved air quality for your occupants and achieve top air quality scores toward WELL certification.
Wellness standards exist for people, so why not also for buildings? After all, we spend about 90% of our lives indoors. Many of us spend seven to 10 hours each workday indoors. This equates to about 25% of our life spent indoors at work. That's a real bummer, especially if our indoor environment isn't healthy. Several studies show that productivity, mood and creativity can be boosted significantly with better indoor air quality and indoor environment quality. The WELL Building Standard guides and advises on the seven factors that can most impact human health and well being.
Competition in commercial real estate is high and projected to remain high. New-builds and renovations are attractive to tenants seeking more open floorplans, more daylight, more amenities and better energy efficiency. In fact, when tenants want to lower their energy costs, gain insight into their own energy consumption and improve indoor air quality in their space, they usually look to new-builds and renovated spaces soon after discovering that they have little control over such things in their current space.
However, retrofitting existing buildings with energy efficiency and other green upgrades is often the better choice, and it can help property managers attract tenants and fill a vacancy quicker.