Sustainability and Commercial Real Estate

By: Zack North

When it comes to commercial real estate, sustainability strategies have undergone a recent shift over the past several years. No longer is sustainability simply a brand differentiator or even a way to cut costs – it’s a proven driver of revenue in today’s industry.

While reducing energy inefficiencies can save you money, those who meet society’s increasing demand for sustainability may also expect to attract more tenants and therefore generate additional income.

Let’s take a closer look at some of the biggest sustainability trends to watch for in commercial real estate.


Smart companies are finding ways to drive productivity and employee engagement through the use of sustainability practices and design. This is why the demand for hybrid spaces, such as mixed-use live-work units, is so high right now.

Flex space and mixed-use buildings are popular choices among commercial real estate investors – if you own this type of real estate, consider conservation tactics related to the structure or building materials that could positively impact both residential and commercial tenants.

Solar energy

With a greater number of vendors and options in today’s market, solar power has become easier for property owners to attain. Like other tactics mentioned earlier, transitioning to solar power has been shown to both reduce long-term energy costs and improve the environment.

A growing number of commercial properties now feature solar panels prominently on their roofs or external walls. The panels obviously serve a functional purpose, but they’re also a billboard of sorts for prospective tenants that advertises your commitment to creating a more sustainable environment.


What steps are you taking to improve tenant wellness? This goes beyond basic cleanliness – do you make an effort to limit the use of harsh, fluorescent lighting, optimize your ventilation system, and encourage recycling?

As society places a greater emphasis on wellness, you can attract tenants by taking steps to convert your property into a space that makes them feel safe, rested, and healthy.

You may have a willingness to improve your commercial real estate property, but not a practical plan of action.  That’s OK – many organizations exist today to help you chart a course for success.

The important thing is to identify the opportunities for bettering both your property and the environment at large.

If you have questions regarding your commercial real estate property, especially if they have to do with financing, please reach out to our experts today.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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