The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
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3. PERFORMANCE RESULTS Greater expectations to achieve and evaluate A variety of factors are now driving increased market expectations for performance. However, the most important is the signing of the Paris Climate Accord. 7 Signed in 2015, this watershed event brought significant implications for real estate. Almost 200 countries signed the Paris Accord in an effort to accelerate and intensify a "transition to a near-zero carbon global economy in this century." Because buildings account for about one-third of global carbon dioxide emissions, real estate will be at the center of these policy activities, with many initiatives expected to target buildings and urban developments. Setting "science-based targets" has become a growing effort in corporate sustainability programs. This methodology creates enterprise carbon-reduction targets in a manner consistent with meeting the two- degree global maximum. More than 200 companies are participating in the Science Based Targets initiative. It is also worth noting that property performance is the last frontier on the Global Real Estate Sustainability Benchmark (GRESB) assessment, and the primary way for real estate investors to continue to demonstrate leadership in sustainability. As more companies begin to implement policies and management strategies for environmental, social, and governance factors, the green certification and actual energy, water, and waste performance of properties will define the true leaders in our field. 4. INTELLIGENCE Harnessing data, analytics, and new technology in real estate The abundance of operational, financial, and environmental data is reshaping building management and analysis. The increase in building intelligence is transforming how and who operates the buildings, and this has added complexities to landlord and tenant relationships. The rapid growth of this industry has made it difficult to stay up to date on the new technology available. By 2021, it is expected that over 3.6 billion connected devices will be installed in commercial buildings. These devices could come in many forms lighting sensors that personalize control of individual fixtures, occupancy and temperature sensors, access control, etc. However, the explosion of data brings challenges for investment managers. Having thousands of data points within a building provides no value if the data is not being used to make informed operational and business decisions. In the coming years, the industry will need to work towards turning this new data into intelligence, making it digestible, actionable, and useful. 5. EXPERIENCE Navigating new tenant expectations and tools for engagement The occupant experience has been emerging as a major industry focus and highlighting the importance of blending sustainability, intelligence, and experience. It is worth noting that 90% of the costs associated with running a building come from employee salaries and benefits. Just 10% is attributed to the building's operating costs, including energy, maintenance, and mortgage/rent, among other things. Worker health and productivity are emerging as strategic priorities among corporate real estate leaders, and the industry continues to innovate on space design and the resulting impacts of how people interact with each other. Health design trends include integrating amenities and features such as access to daylight, quality of lighting, acoustics, ventilation, and thermal comfort into typical building designs. A study by Harvard 8 found the increase in ventilation resulted in a significant improvement in cognition. This trend is leading to a shift in mentality from leasing square footage, to leasing an experience. 6 NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS