Sustainability in a Changing Environment

In today’s economic climate, sustainability proves to be more than a discretionary path; it is a growing requirement. As new policies emerge, understanding the implications for the built environment is crucial. At Nickerson, we recognize the profound impact recent regulations have on our client-partners and the landscape around us. Our commitment to being at the forefront of these changes positions us as marketers and knowledgeable partners who understand the pulse of the industry.

At the COP28 conference last fall, the Governments of France and Morocco, together with the UN Environment Programme (UNEP), unveiled the Buildings Breakthrough, a collaborative effort aimed at reshaping the building sector. Currently, the sector contributes to 21 percent of global greenhouse gas emissions. With an ambitious target to make near-zero emissions and climate-resilient buildings the norm by 2030, 27 countries, representing 34 percent of the global population, have already pledged their commitment. The Buildings Breakthrough not only symbolizes a collective commitment but also seeks to fortify international collaboration for decarbonizing the building sector. The program aspires to propel clean technologies and sustainable solutions into becoming the most affordable, accessible, and attractive options in all regions by 2030. This initiative underscores the growing global consensus on the urgency of sustainable practices within the built environment.

Cities on the frontline of climate change impacts are increasingly vulnerable, with extreme weather events costing the United States a staggering $612 billion in the last five years alone. This financial strain affects businesses and municipalities at a time when financial pressures are already high. We understand that now, more than ever, investing in sustainability and sustainable development is not just a strategic move but a necessary one. The market for sustainable buildings is advancing at a pace that surpasses regulatory frameworks, primarily driven by the escalating demand from tenants who seek spaces aligning with their sustainability goals. The economic landscape demands forward-thinking solutions that resonate with the evolving priorities of the industry.

Staying informed about evolving policies is crucial for businesses to avoid financial penalties and reputational damage. The landscape is shifting, and it demands proactive measures rather than reactive ones. As an agency specializing in the built environment, we recognize our client-partners, especially those with operations across cities, need to be proactive in anticipating and responding to regulatory changes. Understanding the risks associated with climate change and integrating short-term resilience measures into broader decarbonization plans is essential.

According to research conducted by JLL, tenants are willing to pay a premium to secure sustainable spaces. Across major cities globally, there is a clear trend of tenants valuing sustainability, with an average green premium of 7.1% in North America, 9.9% in Asia Pacific, and a significant 11.6% in London. These premiums underscore the importance companies place on aligning their real estate strategies with their sustainability goals, not only to address their own emissions but also to demonstrate their commitment to sustainability to the broader community. From reducing carbon emissions to enhancing employee well-being, sustainable office spaces are becoming central to corporate responsibility strategies. At Nickerson, we empower our client-partners with impactful actions, steering them away from greenwashing. Our focus lies not only on our commitment but also on facilitating tangible outcomes for our clients, ensuring they navigate the sustainability landscape with authenticity and integrity.

At Nickerson, we are not just observers; we are strategic partners. We recognize that the value creation and return on investments in sustainable office buildings will be a tipping point in 2024. Owners and occupiers alike call on us to communicate the intrinsic value and cost/benefit analysis of choosing office spaces in more sustainable buildings. As the tipping point approaches, we stand ready to guide our client-partners through this transformative journey, ensuring their corporate goals align with the evolving landscape of sustainability. Our commitment to understanding the latest trends, global initiatives, and the financial implications of climate change sets us apart.

Nickerson’s client-partner, Synergy, maintains a vast portfolio of sustainable buildings in Boston, even its historic and Class B properties. Focused on sustainable operations and emissions reductions, Synergy became a member of the EPA Certification Nation in 2023, with over 15 buildings achieving Energy Star status, including 8 buildings over 100 years old. Synergy invests intelligently in incremental improvements and employs strategies to maximize the effectiveness of larger building improvements. The total portfolio Site Energy Use Intensity has declined 17.5% since 2020. Flagship assets such as 10 Post Office Square, 100 Franklin Street, and Center Plaza have shown remarkable energy performance improvements and emissions reductions. For example, 10 Post Office Square has seen a 20% decline in Total Site Energy and a 15% reduction in GHG emissions over the trailing 12 months from April 2024 compared to the end of 2019.

As the industry evolves, Nickerson remains ahead of the curve, providing insights, strategies, and unparalleled value to our client-partners. Our expertise, combined with a deep understanding of the latest developments, positions us as a valuable partner for elite, forward-thinking brands looking to make a lasting impact in the world of sustainable commercial real estate. Join us on this journey toward a more sustainable, resilient, and profitable future for the built environment.

Recently, Nickerson has been named the agency of record for CREtech’s flagship conference, CREtech New York, on November 13-14th, at the Javits Center. CREtech, a community of professionals devoted to technological and sustainable innovation in the real estate sector, continues to lead the way in shaping the future of the built environment. Nickerson looks forward to collaborating with the world’s most established real estate innovation and sustainability networking event this Fall.

Lisa Nickerson & Molly Silvia will be at Blueprint in Las Vegas from September 17-19th, the ULI Fall Meeting in Las Vegas from October 28-30th, 9th –11th, and CREtech New York on November 13-14th.

Hope to see you there!

Check out Lisa’s interview with Faisal Butt of Pi Labs on the main stage of CREtech London this May.