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The Benefits of Sustainable Practices for Commercial Real Estate

In the commercial real estate industry, sustainability is no longer a ‘nice to have’ but rather an essential component of responsible and profitable business operations. By implementing sustainability practices, commercial property owners can benefit from a triple bottom line—financial savings, social value, and environmental impact. Let’s explore how these three elements are interconnected and how sustainability can help your business grow.

5 min read
Financial Returns


Sustainability can be the key to unlocking financial returns for commercial real estate businesses. For instance, green building certifications such as LEED or Energy Star ratings can improve the marketability of a property by making it more attractive to potential tenants. Additionally, sustainable practices also mean lower utility bills through efficient energy use as well as reduced maintenance costs due to better building materials. These cost savings are often passed on directly to tenants in the form of lower rent prices or additional amenities which further enhances their appeal.

Social Value


In addition to financial returns, sustainable practices offer social value which is invaluable in today’s world where values and morals are highly scrutinized. A recent study revealed that over 50% of millennials would choose an employer based on their commitment to sustainability initiatives such as renewable energy sources and waste reduction programs. As such, it’s important for all businesses but particularly those in commercial real estate where tenants may be particularly sensitive to these issues.

Environmental Impact


Finally, perhaps the most significant benefit of sustainable practices is the environmental impact that they bring with them. From reducing energy consumption with smart lighting systems and solar panels to water conservation through low-flow fixtures or greywater recycling systems, there are numerous ways that businesses in the commercial real estate industry can reduce their carbon footprint and protect our natural resources for future generations.  

Sustainability is no longer just a trend; it’s become an integral part of doing business in the 21st century—especially in commercial real estate where owners need to remain competitive while still meeting tenant demands for greener spaces and lower rents. Fortunately, sustainability practices offer a triple bottom line solution – financial savings, social value and environmental impact – which allows companies in this space to reap multiple benefits while still staying true to their core values. If you haven’t done so already, now is the time to start exploring how sustainable practices could benefit your business!

All information provided has been obtained from sources deemed reliable.  However, neither Victory Real Estate Group nor any of its brokers, agents, employees, officers, directors or affiliated companies (collectively, Victory Real Estate Group and Related Parties) have made an independent investigation of the Information or the Information sources, and no warranty or representation is made by Victory Real Estate Group and Related Parties as to the accuracy of such Information. The Information is submitted subject to the possible errors or omissions, and no person or organization should rely on the Information, unless such person or organization has conducted and independent investigation to confirm the accuracy thereof.

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Author
Ela Valenzuela
Partner Editor Victory
May 3, 2024

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