Sustainable Future for Commercial Real Estate

Commercial Real Estate, like many other capital intensive industries is one that is not necessarily known for its embrace of technology. While people have built great cities and commercial properties have followed, it has also come with its drawbacks, the impact on the environment. For real estate professionals this presents a 21st century challenge, and one that will require unique optimization of energy, cost-benefit analysis, and other unique criteria to help solve this problem. 

Commercial buildings account for 16% of total CO² emissions in the U.S. Most of that comes from direct fossil fuel use for heating and electricity generation. A growing adaptation of this industry is the development of “green buildings”, which are designed to be resource-efficient and environmentally sustainable throughout the lifecycle of the buildings. From design, to construction, to maintenance and operations. 

However, there are many challenges that still face the industry. The biggest of which is the lack of acceptance amongst developers and property owners. Their concerns are valid and have a basis to them. However, moving towards sustainability in an environmentally efficient way not only helps stakeholders involved in the process, but if done correctly, can help bottom-line costs and operational efficiency.

The future of commercial real estate lies in a balance between profitability and environmental stewardship. Developers and property managers must not only integrate sustainable materials and technologies in new construction but adapt and iterate existing buildings to improve performance. Innovations in smart building technologies, renewable energy, and energy storage are making it increasingly feasible to create buildings that are both cost-efficient and carbon-conscious. As stakeholders in this industry, it is the responsibility of property owners to create communities that will strive for posterity. 

The commercial real estate industry has a unique opportunity and responsibility to reduce its environmental impact while discovering the economic and social value. By embracing sustainability, commercial real estate professionals can look forward to a more efficient future, meet regulatory and market expectations, and contribute meaningfully to the global concerns of sustainability. By doing so, the industry not only builds higher-quality spaces but also helps shape a more resilient and sustainable future for all.