Why Tenants Want Sustainability, Even If They Don't Realize It
Landlords want the best ways to attract and retain tenants. Bisnow gathered a number of experts last week to discuss how sustainability fits in. According to our panelists, tenants don't understand terminology like LEED certification or WELL Building Standard. The market is much more amenity-driven with a wellness focus.
Baroo founder Lindsay Hyde (above right) said Millennials are reshaping their own ideas of green. The age group has a focus on values and diversity, and design aspects of physical spaces should drive tenant behavior.
She said it's important to ask what amenities can be added to improve clients' overall experience and how these function successfully in the shared space.
Bozzuto Management president Stephanie Williams manages more than 52,000 units and 2M SF of retail space. In her experience, the firm's been able to increase consumer response and generate revenue by offering wellness amenities such as Vitamin C showers and circadian lighting, charging a small fee for the additional services.
Federal Realty Investment Trust SVP Jeff Mooallem said the importance is not only focusing on the retail client, but how to serve the consumer.
Simple amenities such as an automatic bike rack station with tire pumps, dog-walking stations with water availability, and energy management teams make the everyday function and flow of the community much more inviting and consumer-friendly, he said.
Related Beal GM Mark Giampa said the average consumer still doesn't know what certain sustainability certifications and standards mean. He said clients don't understand that by keeping operating cost down, you are saving them money.
Cummings Properties EVP Eric Anderson said his firm has been delighted with the trend toward sustainable building and property maintenance practices over the years. When it comes to economics, he said certifications attract clients, but they're not so eager to pay for them.
Jeff agreed that in terms of sustainability the consumer is not as educated on the standards and benefits, but he said they're attracted to energy-saving aspects. He's found great savings in solar panel farms, solar-powered cellphone chargers, and green or farm roofs with restaurant accessibility.
