Center for Active Design and QuadReal Release New Benchmarking Report Showing Building Health Strategy Prioritization Associated with Increased Tenant Satisfaction Scores and Real Estate Portfolio Value
The report shows that benchmarking plays a role in translating evidence-based strategies into concise data points that can then be used to build trust, ensure tenant satisfaction and ultimately increase the value of the real estate portfolio
Launch of new Portfolio Benchmarking Tool will allow owners to easily assess portfolios against Fitwel Healthy Building Standards
NEW YORK, June 8, 2022 /PRNewswire/ — The Active Design Center (CfAD), the preeminent global organization working at the intersection of health and the built environment and the only licensed operator of fitwell®, the healthy building certification system, and QuadReal real estate group (QuadReal), a global real estate investment, operation and development company, today announced the release of “Health generates value in real estate“, a new report that records the positive results that health and wellness strategies are having on tenant satisfaction and, therefore, bottom line results. This report takes a people-centered (health) approach to examine a portfolio of buildings and found evidence of health-promoting strategies can drive tenant satisfaction.
Although the positive impact of healthy buildings on human health has long been established, this report is significant because it directly shows a positive correlation between these strategies, tenant satisfaction outcomes, and financial benefits for property owners and investors. .
By analyzing data from Fitwel dashboards, selecting real estate financial metrics from QuadReal’s portfolio asset types, and results from tenant and resident surveys, the analysis revealed that strategies for promoting health were associated with positive occupant perceptions, although they were not made public. Looking at the Net Promoter Score (NPS) – the likelihood that building occupants will recommend the property to their peers – and financial results, such as rent per square foot, the report found the following four factors to be the most important: :
- Access to healthy food: Projects that implement the Fitwel healthy food access strategies are associated with a higher median property recommendation, but this is one of the least implemented strategies
- Operations: Projects that implement Fitwel operating strategies are associated with a higher median property recommendation, indicating that occupant satisfaction goes far beyond tenant amenities
- Location: Residential projects that meet Fitwel location strategies are associated with higher rent per square foot, evidence of the value of walkable places
- Fitwel score: Increase in Fitwel scores correlates with increase in median score for property recommendation, demonstrating the importance of broad investments in health
“The demand for healthy buildings has never been higher, and now the case for investing in them is even stronger,” said Joanna Frank, CEO of CfAD, operator of Fitwel. “This research clearly shows the value of benchmarking in turning portfolio insights into a pathway that owners and investors can act on to plan their future investments. At scale, this will strengthen health-promoting interventions. as best practices in the real estate industry.”
“One of the QuadReal team’s sustainability goals is to provide healthy buildings for our tenants and residents so they can thrive. From the start, we have believed that investing in the best operations and amenities of their class would make spaces healthier. This aligns with our commitment to be a responsible business,” said Jamie Gray Donald, Senior Vice President, Sustainability and EHS at QuadReal. “Through our collaboration with the CfAD, we have found a clear correlation between a higher Fitwel score and a greater willingness of occupants to recommend the building to friends and colleagues. This reinvigorates our belief in investing in healthy buildings. and to reference wellness more broadly in Our portfolio.”
Fitwel’s new portfolio benchmarking tool, launched alongside the report, can be used by owners and investors to assess the impact of a single asset or an entire portfolio on occupant health and calculate the impact of operating decisions on mental, social and physical health. Users may use this data to respond to industry and consumer demand. The Fitwel Portfolio Benchmarking Tool is available on the Fitwel platform at app.fitwel.org.
Fitwel is the world’s first certification system dedicated to promoting health for all. Generated by expert analysis of over 5,600 academic research studies, Fitwel implements a vision for a healthier future where all buildings and communities are improved to enhance health and well-being. Fitwel was originally created by the Centers for Disease Control (CDC) and Prevention and US General Services Administration in the United States. The CDC remains Fitwel’s research and evaluation partner. The Center for Active Design (CfAD), a global non-profit organization, maintains the Fitwel Standard and conducts objective third-party assessments that lead to certified projects. CfAD’s new business unit, Adai (pronounced “a-DAY”), is responsible for expanding Fitwel to the global market, administering the program while providing top-notch customer service and technical support. To learn more about Fitwel, please visit: www.fitwel.org.
QuadReal Property Group is a global real estate investment, operation and development company headquartered in Vancouver, British Columbia. Its assets under management total $67.1 billion. Since its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its equity and debt investment capabilities in public and private markets. QuadReal invests directly, through programmatic partnerships and through operating companies in which it holds an equity interest.
QuadReal seeks to deliver strong returns on investment while creating sustainable environments that deliver value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
SOURCE Center for Active Design (CfAD)