Reasons to Choose Sustainable Building Upgrades

🤔 Are we designing buildings for the future—or just making slightly better versions of the past? For years, sustainability in real estate has focused on emissions—cutting energy use, improving materials, and increasing efficiency. Buildings account for 37% of global carbon emissions. We track performance, optimize operations, and retrofit where possible. But well-being has often been an afterthought. A new report from the World Economic Forum highlights a major shift: sustainability is more than net-zero—it’s also about net-positive for people. Key notes: - 37% of global carbon emissions come from the building sector—without system-wide action, that won’t change. - 34% of global biodiversity loss is driven by urban development—buildings must be nature-positive too. - Well-being-oriented buildings enhance livability, community resilience, and access—and hold long-term value. The visual breaks it down: every step of the building value chain—from materials to operations—must integrate four core pillars: ✅ Net zero: Circular materials, low-carbon supply chains, and energy efficiency. ✅ Nature positive: Green spaces, water recycling, and biodiversity integration. ✅ Resilient: Structures designed to withstand extreme weather and reduce reliance on external utilities. ✅ Well-being oriented: Non-toxic materials, shared spaces, and urban planning that actually serves people. The bottom line? Sustainable buildings aren't just about emissions. They’re about resilience, livability, and long-term value. And- its not just a real estate issue. It’s a business strategy, a climate strategy, and a people strategy.

Sustainability isn’t just a 𝘵𝘳𝘦𝘯𝘥—it’s an 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 in your building’s future. Sustainability is no longer just a buzzword—it’s a powerful driver of property value. Buildings with green certifications, like LEED, have been shown to command 𝘩𝘪𝘨𝘩𝘦𝘳 𝘳𝘦𝘯𝘵𝘴, 𝘭𝘰𝘯𝘨𝘦𝘳 𝘭𝘦𝘢𝘴𝘦𝘴, and 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘦𝘥 𝘳𝘦𝘴𝘢𝘭𝘦 𝘷𝘢𝘭𝘶𝘦. In fact, a study by the U.S. Green Building Council found that green buildings can see up to a 𝟲.𝟱% 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 in property value, compared to their non-green counterparts. By investing in sustainable features—such as energy-efficient systems, water conservation measures, and eco-friendly building materials—not only are you reducing your building’s environmental impact, but you’re also adding tangible value that appeals to today’s tenants and buyers. For example, a property we worked with saw a 𝟭𝟱% 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 in rent and an 𝗲𝘅𝘁𝗲𝗻𝗱𝗲𝗱 𝗹𝗲𝗮𝘀𝗲 𝘁𝗲𝗿𝗺 after implementing energy-efficient upgrades and showcasing their sustainability efforts. These changes helped the building stand out in a competitive market and made it more attractive to eco-conscious tenants. What sustainability features do you think drive property value the most? #Sustainability #GreenBuilding

Sustainability isn’t 𝘫𝘶𝘴𝘵 good for society. There’s legitimate business value. I’ve definitely noticed this coming up more in conversations with manufacturers, so it was cool to see it backed up by some data. The 2024 𝘚𝘵𝘢𝘵𝘦 𝘰𝘧 𝘋𝘦𝘴𝘪𝘨𝘯 & 𝘔𝘢𝘬𝘦 report surveyed leaders in architecture, engineering, construction, and manufacturing. 87% 𝗻𝗼𝘄 𝘀𝗮𝘆 𝗶𝗺𝗽𝗿𝗼𝘃𝗶𝗻𝗴 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘀𝘂𝗽𝗽𝗼𝗿𝘁𝘀 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗵𝗲𝗮𝗹𝘁𝗵, up 7 points from last year. And 69% 𝘀𝗲𝗲 𝗱𝗶𝗿𝗲𝗰𝘁 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗶𝗻 𝘁𝗵𝗲 𝘀𝗼𝗿𝘁-𝘁𝗲𝗿𝗺, a 14-point jump. I think this trend comes from the changes being so easy to measure: → Lower operating costs from energy efficiency and waste reduction → Less supply chain risk through local sourcing and material reuse → Stronger pull with customers, employees, and investors → Earlier compliance with upcoming regulations 10 years ago, you might have to build a case for sustainability. Now, you might just look kind of silly if you ignore it. Sustainability investments create a cushion against volatile energy prices, unstable raw material costs, and shifting policy landscapes. They also open new revenue streams by meeting the growing demand for low-carbon products and services. All that stuff changes how you operate day-to-day. It shapes where capital goes, how R&D is prioritized, and how you compete for work. It’s a growth strategy.

Planning sustainability upgrades isn't just about compliance. It's about creating value.    As NY's Local Law 97 deadline approaches, a growing number of buildings across Manhattan are showing how sustainability improvements can create value and demonstrate that environmental responsibility and financial performance can be synergistic.    The evidence points to multiple benefits, which can include: - Reduced operational costs through lower energy consumption - Spaces that better serve tenant needs and expectations - Resilience against future regulatory changes   As Brett Bridgeland with our CBRE team notes in a recent CoStar article, integrating sustainability into your regular capital planning creates opportunities for genuine progress, rather than last-minute compliance scrambles. https://lnkd.in/er8zzk65

Top Retrofit Strategies for High-Rise Existing Buildings Retrofitting existing buildings is one of the fastest, most cost-effective ways to cut operating expenses, reduce emissions, and strengthen resilience. With rising energy prices, tenant expectations, regulatory requirements, and investor pressure, the business case for upgrading existing high-rises has never been stronger. Here are some of the most effective retrofit strategies: ✅ Retro-/Re-commissioning – Fine-tune controls and schedules. 10–20% energy savings, 1–2 year payback. ✅ LED Lighting + Smart Controls – Up to 75% lighting energy reduction, <3 year payback. ✅ Smart Drives & HVAC Optimization – Variable speed drives and plant sequencing. Typical 1–3 year paybacks. ✅ Deep Energy Packages – Bundled envelope, HVAC, and controls. 40–50% energy use reduction, ~6-year payback. ✅ Electrification & Heat Recovery – Heat pumps and waste heat recovery. >50% heating load cuts, ~85% CO₂ reductions in phased projects. ✅ Water Efficiency – Fixtures, irrigation, cooling towers, leak detection. 20–40% savings, often <2 year payback. ✅ Healthy Buildings (IAQ) – MERV-13+ filtration, energy recovery, real-time monitoring—improving occupant health and productivity. ✅ Resilience (Solar + Storage) – Protect critical loads, reduce peak demand, enhance business continuity. 3–7 year paybacks with incentives. 🌟 Proven results: From the Empire State Building’s verified 38% energy savings with a short payback period to campus retrofits saving millions of gallons of water annually, the evidence shows these solutions scale across portfolios. 📈 The business case is clear: • Lower operating costs and stronger NOI • Compliance with emerging carbon and performance standards • Healthier, more attractive spaces for tenants • Future-proofed assets that align with investor and market demand The opportunity? Start with quick wins (commissioning, LEDs, controls) and reinvest those savings into deeper electrification, water, and resilience upgrades. With today’s incentives and market pressures, retrofits are not just a sustainability strategy, they’re a competitive necessity. 💡 What retrofit strategies are you prioritizing across your buildings? What are some of the biggest challeges that you are facing? Do you have any suggested vendors that have experience with large real estate portfolios? Any recommendations for innovative financing strategies? Thank you!