National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Combining Real Estate and Social Value
Environmental, social and governmental (ESG) initiatives tend to focus mostly on the environmental – at least when it comes to commercial real estate. But a recent JLL article explained that companies are more focused on social value initiatives in addition to environmental goals. The article also indicated that the built environment could aid in this endeavor.
One way this could be accomplished is by adding green spaces adjacent to buildings for occupants and entire communities to use. According to JLL’s Responsible Real Estate: Social Value survey, 40% of corporates plan to complete biodiversity projects by 2025. Furthermore, 33% indicated they would create green spaces for public use.
Another way to build social value via commercial real estate is to share private space for a public purpose. The article noted that this represents a low-cost example of how the built environment could be used for the public good.
An example of this is a global bank company in Dubai, UAE. This company opens its lobby each week to local farmers, who display their products through an interior farmers market. “While this supports local growers and their families, it simultaneously contributes to employee wellbeing by providing access to healthy food with a low carbon footprint,” the article pointed out.
Real estate stakeholders can also partner to provide value to the entire community. For instance. The Washington Housing Initiative in Washington DC is a public/private partnership that is focused on delivering affordable housing and neighborhoods to working-class Americans.
“Investors, developers, occupiers and city authorities are starting to work together to deliver greater social impact, not just in their buildings, but across communities via placemaking,” said Tim Wedemeyer, JLL’s Head of Sustainability Best Practice in APAC.
But the challenge in such social values is how to measure them. The article indicated that almost one-quarter of organizations lacked any kind of standardized reporting or consistent data. “It makes justifying company resources challenging, as more qualitative social benefits often go beyond organization’s four walls,” the article said.
Though success can be difficult to track, it’s not impossible. “A quarter of our survey’s respondents are already collecting real time data and using advanced analytics for their future social value strategies,” said Marie Puybaraud, JLL’s Global Head of Research for Future of Work.
- ◦Development
- ◦People
