Corporate Real Estate of the Future: Where Sustainability and Profitability Converge
Originally published on June 8, 2023, by Kathryn Hamilton, CAE for NAIOP.
This week at NAIOP’s I.CON East: The Industrial Conference, four experts in the space shared their thoughts on how the corporate real estate of the future will integrate the evolving trends of sustainability and automation so that owners can meet carbon reduction and Environmental, Social and Governance (ESG) goals, exceed tenant specs, future-proof their properties and increase NOI.
Speakers included Alicia Case, LEED AP BD+C, WELL AP, SITES AP, Fitwel Ambassador, LFA, southeast region lead, sustainability, JLL; Nicolette Jaze, head of sustainability, Galvanize Climate Solutions; Shelah Wallace, director, originations, Nuveen; and moderator James Geshwiler, co-founder and chief strategy and investment officer, Catalyze.
Here are six takeaways from their conversation:
There is a supply and demand mismatch. An increasing number of investors are requiring sustainability and tenant demand is growing stronger, yet there is an underwhelming amount of sustainably driven industrial building stock available. Companies that have announced commitments to sustainability and have to execute them want to move into buildings that have been developed to support their goals without incurring any additional costs. Low vacancy rates plus high demand means that nearly everything under construction is immediately leased at delivery.