Making the Case
There is a growing volume of evidence and industry research that shows sustainability execution reaps rewards both environmentally and financially over the short, medium and long term. In fact, increasingly sustainability performance of organizations is an indication not just of well run real estate and companies, but a indication of quality leadership and management. Sustainability execution, as shown in the many reports below, drives:
- Improved financial performance • improved revenue, lower operating costs, enhanced net operating income (NOI), profitability and asset value
- Improved investor recruitment and retention • investors increasingly are looking for objective sustainability performance and corporate social responsibility
- Employee satisfaction, retention and recruitment
- Reduced risk • legislative, building code and regulatory requirements increasingly demand better efficiency as well as more transparency around issues of sustainability performance
- Tenant engagement, satisfaction, comfort and retention • improved efficiency and high performance sustainable operations allows for better indoor air quality, better control of temperature and cleaner more comfortable space. These comfort benefits are not only better but when combined with a Sustainability Strategy to engage with tenants around these efforts also drive deeper, longer term tenant relationships. These have been shown to improve tenant retention, maintaining and improving rent income, reducing tenant improvement costs associated with re-tenanting spaces and thus not only higher NOI but also better cash flow.
Top Ten Sustainability Acronyms and Why They Matter