Tenants’ strong appetite for WELL

There has also been growing demand from tenants for health-focused buildings. In Australia, WELL projects, until recently, were made up of two thirds building owner projects and one third tenant projects. This is the reverse of the US project mix, where tenant projects dominate. Since the COVID pandemic, there has been a shift in the Australian mix as an increasing number of tenants want healthier environments.

“Even where the building is WELL Certified, tenants now seek WELL Certification for their leasehold areas,” Noonan says.

Building owners are on board because anything that helps create “sticky” tenants is desirable. They can demonstrate they offer a health-focused building and that they provide amenities above and beyond anywhere else. WELL offers a way of bringing the various aspects of an organisation together so that it transforms the enterprise. The potential is that the WELL journey stimulates the development of a better and more health-focused culture.

The growing emphasis on environmental, social and governance credentials, or ESG, is also a major influencer in the rise of WELL globally.

Rachel Hodgdon says there is growing attention to real estate assets as corporates tackle their performance on ESG metrics.

“Over the course of the pandemic, we have begun to see real estate is taking centre stage in the corporate efforts to enhance ESG performance.

“A key reason our customers cite today for electing to pursue WELL across their enterprise is specifically for the purpose of enhancing their ESG performance. Solutions to advance people’s health and well-being in real estate are increasingly seen as a way to crack the code on the social pillar or the S in ESG.”