Creating Resilience
3 Tips for Marketing Sustainability in Commercial Real Estate
Sustainability in Property Marketing
There is perhaps no concept in commercial real estate as nebulous as Environmental, Social and Governance (or ESG)—sometimes used interchangeably with sustainability. Whether or not you’re familiar with the intricacies of the subject, there’s a good chance you’ve heard it associated with commercial real estate or are thinking about how sustainability adds value to properties. ESG represents a framework for evaluating an organization’s corporate and financial risks and opportunities on sustainability and ethics—and how they speak about it. Unlike other passing phases in the real estate zeitgeist, it’s clear that sustainability efforts are a business imperative and continue to be a priority, with a survey from CBRE revealing that 70% of global real estate investors and occupiers heightened their focus on ESG in 2022.So how can commercial real estate investors and brokers demonstrate sustainability initiatives that are easy to understand, and how do you market the value of sustainability to tenants? As both investors and occupiers develop their strategies, marketing provides simpler, better narratives around sustainability initiatives and benefits at a property or project. So you can not only join, but lead the conversation, here are three tips on addressing sustainability within your property marketing efforts:
3 Tips for Marketing Sustainability
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Learn the Basics
Understand the fundamentals and vocabulary of sustainability -
Identity Overlaps
Find out how sustainability fits into your audiences’ goals -
Keep it Simple
Distill your message and keep it focused
It’s important to first learn the basics. Understanding each of the components of sustainability you may want to highlight—environmental impact, human impact and sustainable stewardship—will be fundamental to representing these values in your project and developing a holistic narrative. We’ve included some resources from our experts to get you started at the end of this article.
The complexity of sustainability and differing goals can become overwhelming, so we’ll focus on high level principles to keep things in perspective. For occupiers, sustainability concerns can span from energy and water efficiency, to powering their space with renewable energy, to supply chain. For investors, sustainability is typically addressed on two levels: the business and the project. At the project level, considerations like onsite or offsite solar; vendor diversity and carbon emissions; embodied carbon; and compliance with jurisdictional regulations are at the forefront.
As we noted above, both investor and occupier sustainability strategies cover the entire business practice. Just as every client is unique, so their strategies will be too. Understanding the sustainability goals of your client and target tenants will uncover which considerations should be prioritized in marketing efforts. Let’s explore the overlap between occupier and investor sustainability strategies from the perspective of a property, by exploring common interests for each aspect of sustainability.
Direct environmental impact is measurable and tangible. Certifications like LEED, Net Zero Energy or Zero Carbon are important features to highlight as 79% of survey respondents from a CBRE survey said that sustainability building certifications have an impact on real estate decisions. Both investor and occupier strategies may include clear targets around certifications, building performance standards or Green House Gas (GHG) emission reductions—sometimes going beyond what is required by local code. Water conservation, circular economy approaches to reduce waste and renewable energy are increasingly favored as rising resource costs drive the need for resilient design systems.
Sustainability in the built environment makes space for the human element, too. Health and wellness initiatives demonstrate an organization’s commitment to sustainability as a benefit for people. Certifications like WELL or FitWel are a straightforward way to show how a building addresses physical and mental health. In addition, factors such as proximity to public transportation; programming and resources that highlight diverse perspectives and backgrounds; community programs; solar energy that also benefits the community; and inclusive building design can also be opportunities to share your social values. For a mixed-use project, you could also speak to affordable housing opportunities and programming such as Farmer’s Markets.
Finally, there’s sustainable stewardship. This focuses on good governance, transparency, accountability and ethical processes that adhere both to internal and external standards for all stakeholders. Policies and practices that guide operations, supplier programs, risk management, employee standards and other responsible business initiatives can all be included as part of this pillar.
Now that we’ve outlined how sustainability strategy applies to commerical real estate, you must tailor your message to your audience. Depending on the context, you may need to keep it high level or go into detail. Understanding the overlap between occupier and investor strategies will help clarify how to best market your sustainability efforts.
Now that you know what you’re saying and who you’re working to convince, it’s time for making the complex sound simple. You need to refine all you learned into a pithy, clear, and honest message. This is where the science of marketing ends and the art begins. There are a few good rules of thumb for distilling the value of a project. Cut out jargon. Avoid technical language and explain concepts in familiar terms. Use analogies. Remember that sustainability is about making meaningful change for people and the planet. Keep that at the heart of your messaging strategy, ensuring that everything you say reinforces those goals.
It’s easier said than done, so let’s give a few examples. Addressing sustainability in your property marketing might be as simple as adding a slide to a presentation deck or page to a brochure that outlines your project’s sustainability efforts. This can be bullets about certifications and alignment with building performance standards or outlines of vendor diversity considerations. Keep it to a few key points. To speak to an occupier’s sustainability strategy, you might include information in your materials about access to solar energy, an increased pool of diverse talent or on-site spaces that tenants could use for their community programs. You can also express the project’s sustainability efforts visually. Create site plans or building diagrams that outline the positive impact—including reduced carbon emissions—of your project. You might leverage these proof points to develop email or social ad campaigns, explaining how your project will deliver a conscious impact with short form video or engaging illustrations. As you can see, marketing sustainability can cumulatively build awareness about the value your project—and sustainability—delivers.
It’s easier said than done, so let’s give a few examples. Addressing sustainability in your property marketing might be as simple as adding a slide to a presentation deck or page to a brochure that outlines your project’s sustainability efforts. This can be bullets about certifications and alignment with building performance standards or outlines of vendor diversity considerations. Keep it to a few key points. To speak to an occupier’s sustainability strategy, you might include information in your materials about access to solar energy, an increased pool of diverse talent or on-site spaces that tenants could use for their community programs. You can also express the project’s sustainability efforts visually. Create site plans or building diagrams that outline the positive impact—including reduced carbon emissions—of your project. You might leverage these proof points to develop email or social ad campaigns, explaining how your project will deliver a conscious impact with short form video or engaging illustrations. As you can see, marketing sustainability can cumulatively build awareness about the value your project—and sustainability—delivers.
Steer the Conversation
A sustainable future is a more conscious, inclusive, and low carbon future, and your property marketing strategy should follow the same principles. Listen to and understand the goals, establish a shared vision among the stakeholders involved, and communicate that vision with clarity to a target audience. Clearly voicing your commitment to sustainability—and your ongoing progress to meet your sustainability goals—is an opportunity to establish your organization as a leading choice for occupiers who seek to do the same.
Resources
- Strengthening Value Through ESG
- Solar Energy Opportunities in U.S. Industrial Real Estate
- Green is Good: The Enduring Rent Premium of LEED-Certified U.S. Office Buildings
- ESG Sustainability in Real Estate – How it Makes Dollars and Sense
- Real Estate’s Role in the Environmental, Social and Governance (ESG) Agenda
Let’s reimagine property marketing together.
CBRE Calibre Creative Group’s in-house team of industry leaders delivers award-winning, full-spectrum strategies that open new horizons in commercial real estate marketing.