Commercial Investment Real Estate July/August 2018 | Page 18

INVESTMENT
A N A LYSIS
Raising the Bar on
Sustainability
Incorporate an ecofriendly landscape to increase your bottom line.
by Missy Henriksen
16
July | August 2018
Reduce Costs/Increase Profits
The incorporation of sustainable landscapes is a smart way to
benefit bottom lines. In fact, the U.S. Department of Energy
has found that commercial real estate profits can improve with
the adoption of sustainable practices that reduce costs to tenants
and building owners.
One of the first places to start is water usage. Consider ways to
reduce water requirements and energy demands. Is your irrigation
system performing effectively and efficiently or should enhance-
ments be made? Often the investment made in new irrigation
equipment readily pays for itself in reduced utility bills thanks to
reduced water usage. Explore your property’s foliage. Rather than
maintaining plants that require heavy maintenance and watering
needs, incorporate native shrubs, plants, and trees that are adapted
to grow well in the climate and region. A well-designed land-
scape that makes use of native plants and trees can provide shaded
areas for tenants to gather, assist in reducing noise, provide oxy-
gen, and reduce building energy demands for cooling and heat-
ing, which can save thousands of dollars in annual energy costs.
COMMERCIAL INVESTMENT REAL ESTATE
T
rending for years, sustainability in landscaping is more
than a buzzworthy topic; it is influencing the way prop-
erties are developed. With environmentally conscious
building and design practices rising in popularity, many
commercial property owners, brokers, and investors are working
closely with their professional landscape teams to incorporate
green spaces on their grounds to increase the overall happiness
and wellness of tenants — and gain a competitive advantage in
the marketplace.
After all, green concepts such as multiuse outdoor spaces
and low-impact designs continue to differentiate properties and
attract tenants to retail, office, and multifamily housing proper-
ties. According to a study by the University of Washington’s
Urban Forestry and Greening, properties with high-quality land-
scapes receive 7 percent higher rental rates compared to those
without. Similarly, 63 percent of respondents to a poll in the
Husqvarna Global Garden Report said they would be willing
to pay more for a living space if it were located in an area with
green spaces.