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6. RESEARCH Growing body of research by real estate and leading academics There is an increasing amount of research being conducted by some of the leading names in real estate and academia. Recent studies have focused on the linkage between sustainability and financial performances, as well as on improved productivity, occupant experience, and health and wellness. Even with this expanding body of research, barriers exist that hinder progress. For example, real estate is intrinsically illiquid limiting sample sizes of transactions and comparables. Financial data is also held closely and is considered proprietary and confidential. To address some of these barriers, Principal Real Estate Investors participated in a pilot Financial Research Study with the Department of Energy to study over 130 office properties. Building, leasing, and financial information were analyzed to determine if there were correlations between green certification and financial performance. Full results of the DOE analysis will be publicly available soon, and we hope to release further analysis done on tenant satisfaction data in the fall of 2017. IN SUMMARY, each of these six trends are interrelated and influence each other. Data and intelligence enable new sustainability and engagement strategies. Environmental performance is tied to financial performance, and overlaps with the health and productivity of building occupants. Understanding the impact of climate change influences how real estate investments need to adapt and prepare for adverse events. Each of these trends represents new market realities in the new competitive landscape. In short, real estate now needs to be sustainable, resilient, smart, and engaging. Fiduciaries and investors need to understand what the main issues are and develop strategies accordingly. Portions of this paper were previously released at the Principal Real Estate Investors Blog. 1 Sustaining Sustainability: What Institutional Investors Should Do Next on ESG. McKinsey & Company, Private Equity and Principal Investors 2 Investing for a Sustainable Future – Investors Care More About Sustainability Than Many Executives Believe. MIT Sloan Management Review 3 Adapting Portfolios to Climate Change – Implications and Strategies for All Investors. BlackRock Investment Institute, Global Insights 4 Investing in a Time of Climate Change. Mercer 5 Returns on Resilience – The Business Case. Urban Land Institute 6 The Global Risks Report 2016, 11th Edition. World Economic Forum 7 L'Accord de Paris: A Potential Game Changer for the Global Real Estate Industry. Urban Land Institute Center for Sustainability 8 The Impact of Green Buildings on Cognitive Function. Harvard T.H. Chan School of Public Health, Center for Health and the Global Environment 7 NAREIM DIALOGUES SPRING 2017 ©iStock.com/IakovKalinin