As sustainability becomes the word to live by in many industries, the commercial real estate world will also have three primary greening considerations: technological advances and new developments, new norms and regulations, and increased expectations on both tenants and owners. The future of green and sustainable commercial real estate is here.
What is Futureproofing?
The commercial real estate industry is under pressure to become more sustainable. To meet this challenge, some forward-thinking developers are futureproofing their projects. Space is a non-renewable resource. So, if a particular building is just waiting out its longevity, it is soon going to end up being unusable.
Futureproofing is the practice of creating buildings that can adapt and evolve over time to accommodate changes in technology, demographics, and the environment. By anticipating future trends and needs, futureproofed buildings can remain relevant and valuable for decades to come.
There are many ways to futureproof a building, but some common strategies include:
- choosing a flexible layout that can be easily reconfigured as needed;
- using high-quality, durable materials that will last for many years;
- incorporating features that can be easily upgraded or modified as needed; and
- designing for energy efficiency and on-site renewable energy generation.
Futureproofing a commercial real estate project can help ensure its long-term success while reducing your environmental impact.
How do commercial properties need to future proof?
In order to future proof commercial properties, they need to be designed and built using sustainable materials and methods that take into account the changing climate. The buildings should be able to adapt to different weather conditions and still function properly. They should also be designed to reduce energy consumption and save water.
What consequences will this have on the commercial real estate market?
A recent study by the Urban Land Institute found that nearly 60 percent of commercial real estate professionals believe sustainability is a top priority when making investment decisions. While this is encouraging, there is still a lot of work to be done to ensure that the commercial real estate market is futureproofed against the effects of climate change.
What consequences will this have on the commercial real estate market?
For one, we can expect to see an increase in demand for green and sustainable buildings. This could lead to a decrease in overall energy consumption and greenhouse gas emissions from the commercial real estate sector. Additionally, we may see a shift in investment capital towards more sustainable options, such as solar power and green infrastructure.
Such changes would likely result in increased costs for new development and retrofitting existing buildings. However, these upfront costs are likely to be offset by long-term savings on energy bills and other operational costs. In addition, sustainable buildings often enjoy higher occupancy rates and rental premiums, making them more attractive investments in the long run.
The situation in India's Grade A office stock across the four major cities needs a good tune-up as far as ESG matters are concerned, as per JLL.
Ultimately, the shift towards sustainability is inevitable and the commercial real estate market must adapt, or risk being left behind. By taking steps now to reduce their environmental impact, businesses can futureproof their operations and position themselves for success in the years to come.
Conclusion
With the right steps, commercial real estate can be made sustainable and future-proof. By investing in energy-efficient buildings, using sustainable materials, and implementing water conservation measures, we can make a difference for the environment and our bottom line. With careful planning and execution, sustainable commercial real estate is attainable and valuable for all involved.
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