This month, we focused on collecting headlines that not only reflect the current state of where sustainability and commercial real estate intersect, but also where the next year will take the industry.
We hope that these news highlights provide you with a deep dive into what the industry is focused on in the moment while also providing a look at what you and your buildings may need to navigate in the coming months.
And, if you haven’t yet subscribed to our newsletter, it is not too late to receive your Net Zero Hour wrap-up of monthly industry news straight into your inbox this year! Sign up below.
Monthly Decarbonization Debrief
Your overview of everything ESG in CRE you need to know from the last month
1. The Aftermath of Midterm-Election and On-going High-Interest Rates
💡 What You Need to Know
In the aftermath of November’s election, the Federal Reserve increased interest rates yet again. And, leading up to the New Year, Federal elevel legislation did not slow down, causing property prices to increase.
While the combination of this political movement had its impact, predictions are pointing to a much-needed slight post-election post-New Year bump in asset value and a slight decrease in interest levels in the early months of 2023, based on the historical patterns of post-midterm election seasons.
🌎 Why You Should Care
Whether on a federal or hyper-local level, midterms will always create an effect on CRE business for months to follow. With as direct of in impact election cycles have on CRE business, keeping track of not only the immediate impact but also post-election historical trends will help you stay on top of your investments.
Interest rates and inflation are reportedly high across the globe, as addressed by the World Economic Forum last week. And, as candidates already begin to ramp up for the 2024 Presidential election cycle, interest rates are likely to continue changing.
The Net Zero Hour Newsletter will continue to cover this topic in upcoming months to continue to inform on what to expect throughout 2023.
2. JLL Launched Their New Strategic Technology Program
💡 What You Need to Know
JLL’s recently launched Strategic Technology Program — known as JLLT — with the goal to provide a way for real estate leaders to better manage and operate their real estate technology services.
According to its website, JLLT is focusing on technologies that are capable of integrating with building systems to create safer, more productive, and more documented operations. Though, what seems to be missing from their offerings is software that is focused on sustainability or carbon emission improvements.
🌎 Why You Should Care
With JLL as such a prominent leader in the CRE focusing on technology’s presence in their business, this announcement accelerated the proptech trends we predicted last year, providing promise that software technology will become essential, if it is not already, to growing successful CRE portfolios.
As technology’s importance within sustainability and operational strategy only continue to grow, it is more vital than ever for CRE leaders to stay ahead of the technology curve and prioritize optimization software that can increase NOI.
3. CRE Leaders Predict Top 3 Sustainability Trends for 2023
💡 What You Need to Know
A new report documents the state of the industry with a major takeaway: profitable decarbonization is possible, if you are smart about ESG goals. With our new reality of high interest rates, this report aims to provide context on where building owners can focus in order to get the most return in investment into their ESG strategies.
The report also details the upcoming new sources of decarbonization pressure, with sources growing beyond local regulatory requirements and investor goals. It also takes a deep dive into the changes in ESG standardization we may see in 2023.
“Everyone can agree that a low/no carbon industry is the goal. The more complex question is the speed at which an industry can practically progress,” said GRESB, in the report.
🌎 Why You Should Care
With exclusive insight and prediction from major industry leaders – including GRESB – this new report is a must-have to CRE leaders looking to stay ahead of sustainability needs and find profitable decarbonization.
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