CREJ

June 2021 — Office & Industrial Quarterly — Page 15 www.crej.com OFFICE — WORKPLACE TRENDS W hile the full impacts of the COVID-19 pandemic on real estate remain to be seen, we do know one thing: Drastic changes in the built environment are needed to keep up with the way policies and human behaviors have shifted over the past year. Going to the office is no longer simply about getting work done; the office must now be a place where people collaborate with colleagues and fulfill their desire to be a part of a company’s culture to drive positive social change within a working community. For companies that are reimag- ining their workplaces through return-to-office strategies, there are four critical pillars that all organiza- tions looking to evolve and thrive post-pandemic must prioritize. We see this as the “nexus of sustain- ability”: 1. People: Promote the mental and physical well-being of employees. 2. Social: Create a long-lasting cul- ture and strong community. 3. Environmental: Protect natural capital, maximize energy efficiency and eliminate carbon emissions. 4. Economic: Invest in early plan- ning to build resiliency and opti- mize return on investments. Together, this nexus of sustain- ability is reshaping how companies think about the future of workplace, and an integrated approach across this nexus is more relevant than ever. The question now is, what do commercial real estate profession- als do about it? Commercial real estate teams can use these high-lev- el, critical steps as an entry point: n Prioritize health and well-being ini- tiatives. Now more than ever, the workplace experi- ence has shifted to focus heav- ily on the health and well-being of employees. Teams will need to shift how they function in their shared space, and engagement strategies that foster employee buy-in and participation will lead to a thriving cultural evolution in the workplace that prioritizes employees’ mental and physical well-being. Companies should demonstrate a “day in the life of hybrid working” for individuals and teams to illus- trate how and where hybrid work happens. They also should call on leaders and managers to establish and model social behavior stan- dards that prioritize well-being to help the organization define work- style effectiveness and adopt best practices. n Redefine the working environment. Fostering safe environments takes more than ensuring your mechani- cal systems are updated for bet- ter air quality. It’s about creating a place of security and comfort that allows people to accomplish their best work. Companies will need to develop an experience framework that aligns business goals, asset management, sus- tainability goals and strategies that meet the emotion- al and physiologi- cal needs of occu- pants and visitors. To do this, cre- ate settings within the work environ- ment to foster social collisions while maintaining safety protocols. Define a hybrid workplace, because where employees work from will have major implications on asset management, protocols and future expansion plans for organizations at any stage. Think beyond “one” workspace. Instead, utilize a net- work of spaces easily accessible to individuals and teams. Also, expand the design of work environments beyond office walls and create pro- grammatic and technological pro- cesses to shape a virtual place. n Assess climate risk to build resil- iency. Commercial real estate pro- fessionals have a growing financial incentive to assess the climate risk on their portfolios. As they develop robust initiatives to drive sustain- ability and resiliency portfoliowide, organizations that transparently benchmark and document progress toward goals will be better equipped to answer market demand for envi- ronmental stewardship while build- ing critical climate readiness across their portfolio. Companies can use climate models to help inform long-term decision-making around real estate strategy. They also can work cross- functionally in the organizational hierarchy to develop achievable goals for resiliency initiatives and associated action plans, which may incorporate building certifications, life cycle assessments, sustainabil- ity guidelines and more at the port- folio scale. n Establish a robust communication plan. Clear and concise communica- tions regarding how employers plan to accommodate a modification to behavioral norms should speak to the hybrid work/home structure and find a way to infuse these new norms while slowly integrating peo- ple back into the office. Ultimately, this will lead to an analysis of the impact of a company’s real estate on business objectives to support employees’ shifted workplace pri- orities. Companies should prioritize thor- ough communication across the organization, which will be critical in supporting employee confidence in their organization. This should be a communitive effort across all business verticals within the orga- nization to ensure transparency and trust. Consistent messaging from executives, business leaders and team leads is key. Also, establish a multitiered com- munications platform (for exam- ple, identify “hybrid” champions, intranet, Slack, Teams, etc.). Define and communicate clear systems Foundations of high-performing placemaking Emmy So Vice president, real estate and workplace solutions, Stok Adam Guli Director of client solutions, Stok Please see So, Page 16 R ecent research has revealed that, between home and work, adults spend almost 90% of their time indoors. This means that interior spaces can have a powerful influ- ence over an individual’s health and lifestyle. Indeed, the majority of what determines human health is directly based on the physical and social environments where one lives, works and plays. Through its design and functional- ity, a property can shape daily hab- its and activities, drive individuals toward healthy or unhealthy choices, and influence overall health through the quality of the surroundings. This connection between buildings and wellness also can impact busi- ness outcomes, potentially leading to lucrative gains. Properties that thoughtfully incorporate wellness models create a more productive, sat- isfied and healthy work environment. As such, real estate professionals are in a strongly unique position to support both public health and their clients by exploring the numerous benefits that wellness-based design can provide. n What is wellness? Understanding human health and its connection to real estate starts with understand- ing wellness holistically. Wellness encompasses more than just physical health, with most models recom- mending at least six dimensions to consider. In addition to this, research conducted by the World Health Orga- nization and the Centers for Disease Control and Prevention showed that genetics are responsible for only 10% of a person’s health. This, then, begs the question: If physical health is only one consideration of wellness and genet- ics contribute very little to a person’s overall health, what exactly is wellness? Most wellness models include six major dimensions: physical, mental, emotional, spiritual, social and environ- mental. • Physical: Supports a healthy body through exercise, nutrition and sleep. • Mental: Focuses on engaging the world through learning, problem- solving and creativity. • Emotional: Being in touch with, accepting of and able to express one’s feelings (and those of others). • Spiritual: The search for meaning and purpose in human existence. • Social: Emphasizes connection and interaction with others. • Environmental: Underscores the role we play in bettering the natural environment. The most desirable real estate properties, especially post-pandem- ic, will embrace many, if not all, of these dimensions and positively contribute to public health. How- ever, recognizing a multifaceted picture of wellness is only the first step. The second step is to build an understanding of how and why a healthy environment can support a client’s bottom line. n The business benefits of healthy environments. Today, sustainabil- ity conversations are expanding to address building occupants’ overall health and wellness, seeing clear data that a healthy workplace with happy employees is good for busi- ness. A physical space can affect people and relationships. The space we inhabit has a certain energy, a feel- ing that affects our mood. If we are unhappy in a space, that can carry over to other parts of our lives. Our relationships, both personal and pro- fessional, will reflect it. Various factors influence the qual- ity of a space, including color, light and materials. An environment with poor lighting, awkward design and a dreary atmosphere can negatively affect an occupant’s mental and physical well-being. When a busi- ness occupies that space, negative moods can damage company morale and hinder opportunities. As a result, poorly designed and constructed spaces can create tense interactions, stressed relationships, poor commu- nications and low productivity. On the other hand, properties that promote health and wellness pro- vide vital benefits. Employees prefer green buildings that make them feel healthier and more productive. A building’s asset value increases the greener and healthier it is. Indeed, a recent report by the World Green Building Council showed that employees are happier in a green space, such as one that reduces energy consumption, greenhouse gas emissions and air pollutants. With natural light, access to nature and other mood-enhancing attri- butes, these buildings also improve occupant well-being, satisfaction and productivity. In one case study, a net-zero carbon office showed 94.5% staff satisfaction and better health reported by 72% of its employees. Yet another office experienced a 68% reduction in reported respiratory problems, with staff sick days almost halved. The companies that own or occupy these buildings also experi- ence strong financial returns. These companies realize economic savings through resource-efficient designs and operations while also seeing reductions in staff turnover, absen- teeism and presenteeism. The WGBC report further revealed that the most significant benefits occurred when environmental con- siderations were rooted in the ini- tial design phase. In other words, the companies that experienced the largest economic benefits were also the companies that weighed potential impacts on people and the environment from the start of build- ing design. This early consideration helped establish a clear path to achieving key goals, such as improv- ing air quality without sacrificing energy efficiency. n The results are clear. A success- ful wellness-based building reflects the multiple dimensions of well- ness, providing remarkable benefits to all. Employees prefer and work best in green and healthy buildings. Wellness-based design and the future of real estate Rami Vagal, LEED, WELL AP Senior manager of sustainability, Mohawk Group Please see Vagal, Page 16