Jared Londry on the Role Health and Wellness Plays in Determining Commercial Real Estate Value

Up until recently, one of the main factors discouraging developers from incorporating comprehensive green building methods was the simple costs associated with doing so, but recent economic analyses — along with the fact that the cost of implementation has also been reduced significantly and continues to trend downward — have demonstrated that there are a variety of short- and long-term factors associated with health, wellness and productivity that add value to commercial real estate properties. Jared Londry, a commercial real estate broker with quite an impressive record of success representing commercial real estate sellers, has seen how the focus on factors influencing health and wellness has played a role in determining the value of an increasing number of commercial properties.

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The quality of the air and lighting — especially natural lighting — can have a substantial effect on the health, wellness and productivity of the employees working in the offices within the building each and every day, so buyers are becoming increasingly aware of the enhanced income potential associated with greater productivity levels and reduced health care costs. Green building strategies also influence costs associated with energy use and may encourage potential buyers who recognize the likelihood of future incentives and regulations for buildings constructed based on sustainable principles.

Of course, it remains critical for those representing commercial real estate sellers to properly promote the inherent value associated with these kinds of building practices. Commercial real estate buyers are indeed becoming increasingly aware that there is a certain value associated with buildings constructed using sustainable principles, but that does not mean they are aware of the total value these kinds of buildings generate with regard to the short- and long-term impact on health, wellness and productivity. After all, what buyer would not be interested to learn that a recent study observed a clear link between green office environments and higher cognitive function?