COMMERCIAL LANDLORDS: TENANTS WANT TO UNDERSTAND YOUR ESG GOALS

Environmental, Social and Governance (ESG) has become an important factor in commercial real estate (CRE). In Equiem’s Global Tenant Report, a survey of nearly 3,000 office workers, “sustainability” received an importance rating of 8/10 or "very important".

According to PricewaterhouseCoopers, in less than five years, ESG assets will constitute 21.5% of total global assets under management (AUM). With global AUM predicted to increase to US$33.9 trillion by 2026, that 21.5% is worth trillions of dollars.

Ben Hurley Content Marketing Manager Equiem Sydney, Australia

However, while the importance of ESG is growing in the industry, there exists a widening gap between the ESG practices of commercial assets and awareness among their users. Among the thousands of workers surveyed for Equiem’s report, only 21% say they are fully aware of what their building is doing for sustainability and 40% said that they feel they have no way to play a part in that mission.

Landlords are taking ESG seriously. But without communicating these initiatives to their tenants, they run the risk of leaving significant value on the table.

The demand for ESG in commercial real estate has never been higher. This demand is driven by a range of factors, including the growing awareness of climate change, increased transparency in corporate practices and a desire for sustainable investments.

ment to ESG can benefit.

Landlords must put in place communication strategies that invite their tenants and users to participate in a shared mission of sustainability. These include:

• Regular newsletters showcasing the building’s ESG results — and how tenants can help to propel those results.

• Content about policies and procedures

• A tenant experience platform like Equiem to post regular digital news feed items for your users.

• Partner with like-minded organizations and businesses to promote ESG goals

• Listen to tenant feedback. Consider running regular polls and surveys.

• Incentivize tenants to participate in ESG.

A key factor driving the growth of ESG in CRE is data. Landlords can now track and analyze a wide range of ESG metrics, from energy usage and carbon emissions to employee engagement and community involvement. This data can help landlords identify areas for improvement and make informed decisions about how to prioritize their ESG efforts.

As demand continues to grow, ESG will be the unique selling point of the future in the commercial real estate space. Landlords that can demonstrate their commitment to ESG will be better positioned to attract tenants and investors and to stand out in a crowded market.

Landlords that can demonstrate their commit-

But if landlords are going to reap the full benefits of their ESG initiatives, they must communicate these programs with their tenants.

LAURENT

MICHAEL MINTZ