Climate change has affected our lives significantly in the past few years, and it has everyone concerned. Governments, organizations, and individuals are trying to find ways to reduce carbon emissions and shift to sustainable living to slow it down. Environmentally sustainable commercial real estate is one of the ways our industry has responded to the concern, but there is a lot of uncertainty around it.

Our job as commercial real estate brokers is to know about the latest trends in the industry to ensure we can provide our clients with the latest information. Therefore, this blog post will explain environmentally sustainable commercial real estate and its prospects.

What is Environmentally Sustainable Commercial Real Estate?

Environmentally sustainable commercial real estate refers to commercial buildings with a lower overall carbon footprint than their counterparts. There are several ways for achieving sustainability in commercial buildings, the most prominent of which are mentioned below:

1. Sustainable Materials

Some commercial buildings are considered sustainable because they are made using environmentally friendly and recyclable materials. The materials are structurally safe and secure, so they do not increase the property’s overall risk, and the scrap doesn’t damage the environment.

2. Green Roofs

Green roofs or garden roofs are adjusted to have a full garden to top. The presence of greenery increases fresh air in the atmosphere and uses natural cooling to keep things comfortable on the hottest summer days.

People are also planting vegetables and fruits in gardens made within several commercial buildings to create urban farms. Urban farms are an attempt to reduce food waste due to problems in logistics.

3. Using Clean Energy for Electricity

Lastly, a commercial real estate property is considered sustainable if it relies on clean energy for its electricity needs. Solar energy and wind energy are examples of building owners pushing for a more sustainable approach when managing their commercial buildings.

Why is it Trending?

Environmentally sustainable commercial real estate is trending because it is the need of the hour. Climate change is progressing at an alarming rate, and the Texas winter storm of 2021 is proof that it will have a devastating impact on our lives without intervention.

Hence, more organizations are trying to become more sustainable in their operations to prevent worse disasters.

What are the Future Prospects?

47% of surveyed commercial real estate investors said they expect higher market demand for green commercial buildings shortly. The choice seems inevitable considering several countries have declared a climate emergency, and there is global pressure to become more responsible in the consumption of resources.

There is also a chance that the government may introduce legislation to encourage sustainability. Therefore, now is the right time to invest in such ventures.

Final Thoughts

Overall, environmentally sustainable commercial real estate is trending, and its demand will continue to increase. The profitable solution is to consider investing in such ventures to include them in your portfolio.

Don’t hesitate to contact the CHRE team to explore commercial real estate investment in Rio Grande Valley. We have been working in the industry for several years and find the best deals for your portfolio.