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Employee turnover in the industrial sector reached 60% in 2020

Push for Healthy Workplaces Moves into Industrial Real Estate

Although office-using employees are usually thought of when the topic is workplace environments that promote better health and wellness, workers in the industrial space can benefit, too. The Center for Active Design (CfAD),  the sole licensed operator of  the Fitwel healthy building certification system, and QuadReal Property Group have partnered on “A Better Box,” a new report outlining a series of evidence-based guidelines for supporting better health and wellness outcomes at industrial sites.  

In conjunction with the report, CfAD also unveiled its Commercial and Industrial Site scorecard to provide Fitwel certifications to industrial buildings.  

The North American warehouse sector’s annual growth in warehouse and storage workforce is projected at 2.7% through 2026, with a valuation of more than $87 billion. And within this already-enormous and growing industrial sector, the turnover rate grew to 60% in 2020 alone. With research showing 87% of employees consider health and wellness when choosing an employer, there is a significant disparity between what is expected in terms of quality of experience and what is being provided.  

“The need to optimize industrial workspaces has always been there — but the incentive and demand has not,” said Joanna Frank, president and CEO, CfAD. “With industrial property vacancies at an all-time low, paired with subsequent challenges around the labor market and employee retention, growing supply chain demands, and the expansion of e-commerce, the tactics recommended in this report offer an approachable starting point, giving owners, facility managers, and tenants a range of practical, validated ideas to consider.”  

Based on the latest scientific literature, interviewing industry leaders, incorporating sector-specific best practices and drawing upon results from real estate projects that have successfully achieved Fitwel certification, “A Better Box” outlines three overarching recommendations — maximize location and site accessibility, design functional and supportive interiors and create spaces that promote productivity and preparedness. It also serves up a holistic set of strategies necessary to meet each of these guidelines, along with an explanation for the long-term returns that can be anticipated with adoption.  

CfAD says that by following approachable recommendations—prioritizing  access to nature, access to essential facilities, safe use of spaces, emergency preparedness and transparency in communication—owners, facility managers and tenants will be able to better retain top talent, reduce injury and absenteeism, lower stress levels, mitigate the risk of contagious disease transmission, decrease risk of chronic illness, increase overall job satisfaction, and ultimately improve individual and organizational productivity.  

“Companies adopting the smart, doable recommendations contained in this report will not only differentiate themselves, but they will also join a vanguard helping to drive transformation of the built environment,” said Frank.  

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Inside The Story

CfAD's Frank

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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