ESG in Commercial Real Estate

Welcome to today’s segment on commercial real estate. Head over to our YouTube channel or check out this article from Forbes and this Wikipedia page about ESG to learn more.

We want to talk about the aforementioned article in Forbes by Bradford Dockser about strategies for commercial real estate owners and operators under the upcoming Biden administration.

There are a lot of good things here, but a lot of this won’t surprise most people. They’ve got five points:

Commit to the staying power of ESG, ESG being environmental, social, and corporate governance policies which have gained a lot of popularity over the last few years by focusing on environmental issues, social responsibility, and good transparent corporate governance, you will enhance the value of your assets and operating companies. That is the theory.

Point number two: recognize that decarbonization is our fight too. This is an extension of the environmental policies with an extra emphasis on decarbonization, getting rid of the carbon footprint from the commercial properties

Benchmark, Adapt, Monitor, Repeat. This is regularly sage advice for goal setting and measurement on the goals that you set. Whether they be rent increases or energy efficiency in your properties, that is a good point to pursue at all times.

Fourth? Play the long game. The point here is that the expectation is a Biden administration will not be as “pro-business” as we have experienced. That doesn’t mean it’s bad for business, but the likelihood of making quicker capital gains in a slower moving economy is lower. So play the long game. Make good long term decisions.

Be resourceful is the final point. Again, always a good thing to do, but be efficient, be deliberate is how we interpret the point of this article.

These are good points for us to consider, no matter what our business is, but this particular article is about commercial real estate. Harvard Grace does advise on commercial real estate, so if we can help you, please let us know.

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