Daily Data 📈
We've talked before about the rising desire in residents for better amenities when renting—whether residentially or commercially. Yet, as a global research study recently released by JLL reminds us, "Today, after a global pandemic, the understanding of health goes well beyond an amenity package to include more technical building characteristics like indoor air quality, temperature and humidity, as well as building operating procedures such as cleaning protocols."
So, what do these "building characteristics" add up to? A team of Harvard researches summarizes them as the 9 Foundations of Healthy Buildings:
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Investing in these result in real cost benefits for tenant and owner, garnering the "equivalent to a US$6,500 increase in productivity per person for year" and a rise in rent value between "4.4% to 7.7% more per square foot than nearby, non-certified and non-registered peers."
The JLL 3/30/300 rule is a handy formula to keep on hand: For every $3 spent on utilities, a company spends $30 on rent and $300 on payroll. "This rule demonstrates the power of real estate decisions to significantly impact the largest line item - people costs - by making employees happier and more productive."
Read the Yahoo! Finance summary, with a link to a downloadable copy of the study.
Materials That Will Make or Break Your Construction Costs
In the wake of the pandemic, we’ve become that much more aware of how construction costs impact the housing market — whether you’re building from scratch or doing a renovation.
Costs have been on the rise, period. For real estate investors, part of maintaining optimum profit margins is balancing quality, durable building materials with affordability.
The Take
Investors don’t have to be helpless when pitted against tornadoes, hurricanes, and snowstorms. Take charge of your investment future by taking some of these steps before and after disaster strikes.
Click the picture above to download the Take of the week!
The Word
Check out our recommended reading for the week:
- How Real Estate Pros Can Prepare for Future Environmental Regulations (Forbes)
- This panel-based round-up is a helpful how-to when it comes to practical, actionable steps toward green-ifying your investing.
- Why should you care? These days, there are literal cost benefits to going green, and there are surely more to come.
- Climate change and real estate: the new calculus for homebuyers (CNET)
- When investing, it's essential to see through the eyes of a future resident. This article certainly opened our eyes to the way the environment is affecting American's current in- and out-migration patterns.
- Why should you care? Don't be the investor who buys a property in a soon-to-be water desert.
- Commercial Real Estate's Sustainability Goals Have a Glaring Blind Spot (Propmodo)
- Regardless of your residential or commercial real estate plans, this urban planner offers an interesting take on the broader horizon of our portfolio's footprint.
- Why should you care? When we consider market potential, transportation and infrastructure play a significant role.
