Improving Quality of Life for Residents
Focusing on Sustainable Communities and Eco-Friendly Projects
By Jordan Kavana
The rise of the Coronavirus in 2020 marked a before and after stage in the real estate industry. As jobs became remote, and various areas shut down, a vast population from the North started migrating at faster rates than ever towards the South, which brought firms, partners, and CEOs to reorganize their business ideas, and changed the way in which investors perceived stable markets.
Following studies developed by Forbes, and analysts’ columns detailing the future of real estate, Americans are now seeking “warmer, healthier, less dense and more mobile places that offer access to the outdoors and more open spaces.” As investors and developers, it is important to understand what causes such a change and analyze what communities need and want in the forthcoming years.
These new features are encompassing the fact that several sectors of the US population realize that they must adjust to a new form of life. Being able to grow within a community that seeks to improve one’s well-being, and includes amenities to avoid underlying conditions, ensures that residents will feel safer and will have the space to accommodate all their needs despite a global pandemic.
As 2022 begins, and businesses adjust to the “new normal,” there is a clear statement one can be certain of: Health Comes First.
Health Comes First
Previously, real estate trends focused on the commercial side of projects, which often prioritized structure, feasibility, and convenience. However, most companies did not take into account the carbon footprint that new constructions left behind, nor the communities’ well-being through the usage of non-toxic/sustainable products within them. Often, such products have been thought of as high-cost luxuries which do not benefit companies within the single-family/multifamily residential space, but rather, products that imply additional costs and decreased revenues.
Nonetheless, Transcendent Investment Management (TIM) has observed a current rise in healthy communities. Since 2008, The Private Equity Real-Estate Investment Firm has centered its strategy on analyzing the intrinsic value opportunities of developing projects that are energy-efficient and revolve around well-being and mindfulness.
Studies performed by the US Green Building Council (USGBC), which distributes the Leadership in Energy and Environmental Design (LEED) certificate, demonstrate that green communities decrease their energy expenditure by at least 25%, operating costs by 19%, and improve revenues by 9%. Thus, the innovation taken into account when developing a new BTR project would not only deem profitable, but also increase the quality of life of all people, not just a select few.
Along with its Build-For-Rent Collection (2019), TIM has decided to take on the challenge and launch the newest “CleanLiving Health and Wellness” subsidiary. It is envisioned to become a collection of communities that combine technology, programming, and amenities designed to connect physical, mental, and spiritual health with real estate. Recognizing that well-being starts at home, and by implementing multi-purpose rooms, community gardens, and walking trails, the tenant is seen as a human being who can develop their own lifestyle revolution at a low financial expense.
Inclusively, the company has the purpose of fulfilling the Six Core Pillars of Health (Supplement, Movement, Mindset, Nutrition, Diagnostic, and Sleep) by establishing healthy partnerships with companies that have the same mission as CleanLiving. In terms of the two largest pillars, Supplements and Movements, the subsidiary has a team composed by Kimmi Le, PharmD, that advises on aiding tenants through the use of vitamins, amino acids, and food nutrients. Regarding Movement, the green areas will be constructed in a manner that will allow community members to thrive and develop leisure activities in nature, such as jogging, and outdoor exercises.
Achieving Certifications
All the above will be complemented by aiming to achieve a Green Building Certificate. By utilizing energy conscious products, eco-friendly paint, sustainable materials, and Smart Home technology, the communities should utilize fewer resources, produce less waste, and enhance the use of fresh air, sunlight, and natural waterways. It is important for the team to comply with all the requirements to obtain certifications such as LEED, Energy Star, or the Living Community Challenge Certificate. These certifications not only focus on the decrease in community energy & water usage, but also on providing a better quality of life.
Thus, by maintaining an eco-friendly structure to allow bikeways & transport access, and by complying with environmental laws, both the walking and livability scores of the areas will increase, promoting the installment of similar homes/communities.
Although feasible, fulfilling all aspects from the planning phase to the execution phase is a process. Each member of the team must comply with all the regulations on the areas they are covering. The purpose is to achieve the firm’s goal from a health and wellness spectrum. Nonetheless, deciding which products should be implemented according to the location, costs, and difficulty level must also be discussed with the builders and evaluated before construction begins. Following the COVID-19 pandemic, the supply-chain restrictions have also represented a hurdle within the industry. Material costs have increased which raised the total cost of construction. Therefore, the firm’s experienced team must work with different options and available resources.
This evaluation is imperative, especially when it comes to complying with and evaluating certifications such as LEED’s requirements. A minimum number of points must be obtained in 7 categories: Energy and Atmosphere, Materials and Resources, Indoor Environmental Quality, Innovation, Location and Transportation, Sustainable Sites, and Water Efficiency. Each of these have pre-requisites that must be considered, and the team must decide which areas should be prioritized when choosing amenities and projects.
Ultimately, the purpose of the USGBC and equivalent associations is to ensure the real estate industry has a positive impact on the environment. The objective is to improve the quality of life of residents by focusing on their mental and physical health through diverse programs, and healthy and eco-friendly amenities paving the way to creating better and safer homes for all.
