What do you do if sustainable practices pose challenges for your real estate business?

Sustainable practices shouldn't be the obstacle. The problem may be framed incorrectly. If it is a cost challenge, don't think in terms of ratings, rather, use environmental impacts help to guide material selection and think in terms of life cycle costs instead of first cost - think value.

When faced with obstacles, my approach is rooted in innovation and adaptability. Firstly, I believe in leveraging sustainable practices as an opportunity for innovation rather than a hindrance. By integrating green technologies, eco-friendly materials, and energy-efficient designs. Secondly, collaboration is key. I actively seek partnerships with experts in sustainability, architecture, and urban planning. Together, we brainstorm creative solutions that address environmental concerns while remaining financially viable. Additionally, education plays a crucial role. By fostering a culture of sustainability within my team and among stakeholders. Lastly, I always keep an open mind and remain adaptable.

Our firm at one point hosted physical mock ups in a warehouse and held educational forums with City Building/Fire Officials to look touch/feel the means of construction (for us it was CLT). Being able to look and feel the product added with the already robust data from ANSI, led to a general positive reception and gave the opportunity for City officials to make informed policy decisions/regulation that promote safety and reduce the amount of would be red tape from an approval standpoint

Living and working in Nigeria, I thought we would breeze through regulatory hurdles. I was pleased to find that the ministry of the environment in Lagos state was very abreast with international standards and were willing to see us adhere to them. We were ahead because it is a core value for us on our project. We found a helpful partner in the regulatory agent as we often sat down to discuss the innovations we were bringing. It’s been a pure delight.

Collaborating with different organizations and institutions indeed enhances synergy and improves projects. Expanding these relationships can pave the way for future projects and proposals, fostering growth and innovation. Absolutely, staying abreast of sustainability regulations at all levels of government is crucial for real estate projects. Building strong relationships with regulatory bodies can provide invaluable insights and support for compliance efforts. By understanding and embracing these regulations, you can not only ensure compliance but also leverage them to drive innovation and create sustainable, value-added projects.

Following those guidelines not only ensures structural stability and energy efficiency but also opens doors for future collaborations and constructive feedback from stakeholders. It's a strategic approach that can lead to long-term success. Absolutely, staying up-to-date with sustainability regulations is crucial for real estate projects. Building relationships with regulatory bodies not only ensures compliance but also opens doors for collaboration and incentives. It's about turning regulatory challenges into opportunities for innovation and sustainable development.

Sustainable Red Tape? Untangle It. Don't let complex regulations around sustainability slow you down. Stay informed about local, state, and federal green building codes impacting your projects. Proactively build relationships with regulatory bodies. They can clarify compliance needs and offer incentives for sustainable development. Understanding these regulations can unlock creative solutions. By working with, not against, regulators, you can turn hurdles into opportunities to push the boundaries of sustainable development. Being collaborative is the only answer to making progress in this space!

In this sector, we always tried to guide and target the suppliers in the project's development to increase our production and development capacity, and the suppliers also benefited more from the project's development. That's excellent advice! Expanding your network to include suppliers specializing in eco-friendly materials is crucial for sustainable development. Attending industry events and joining professional groups focused on sustainability can indeed provide valuable insights and connections. It's a proactive approach to staying ahead of the curve in terms of both materials sourcing and industry trends.

Sourcing materials has never been so simple thanks to the web. I remember peeling labels of product in the hope they would supply us. The World is only a click and a mail away, and suppliers are happy to expand. But, the key is to use eco products and technologies that make sense. Most new products can save time, money but importantly produce a better outcome.

Sustainable Sourcing? Think Outside the Box. Limited access to eco-friendly materials shouldn't stall your project. Expand your network! Connect with suppliers specializing in sustainable building products. Attend industry events and join green development groups. This not only opens doors to new materials but keeps you on the cutting edge. By exploring alternative suppliers and staying informed about emerging sustainable options, you can find the perfect materials to meet your needs and elevate your development's eco-credentials. Big steps forward are being made in this space but more progress is always needed to forge forwards

The biggest risk for a developer is that a sustainable material sourcer will go out of business during the life cycle of a project. To mitigate this a developer can seek supply relationships with material vendors which generate a kit of parts approach, where designed connection point/performance requirements can be easily swapped out with a market rate product if needed. Another idea is while there is risk in being an early adopter of sustainable materials there is also potential investment opportunities. For smaller firms - large developers/funds could consider an investment into a sustainable material supplier. So the product is ultimately designed for and by the end user.

Speak to as many suppliers and buyers as possible. Key are the risks of being early adopters including ‘modelled’ benefits and supply chain certainty. Many sustainable materials and products seem to be priced to recover R & D costs within 2 or 3 years. More large scale and longer term investment required to reduce costs for SMEs.

There is an English proverb that says: I am not yet rich enough to buy cheap things. Absolutely, educating stakeholders about the benefits of sustainable practices is crucial for fostering support and alignment with sustainability goals. For instance, implementing energy-efficient systems can lead to significant long-term cost savings by reducing utility bills. Additionally, highlighting successful sustainable projects, like green building certifications or renewable energy installations, can demonstrate tangible benefits such as enhanced public image and increased property values. Clear communication tailored to the stakeholders' interests and concerns is key to garnering their support and cooperation in adopting sustainable practices.

Unconvinced Stakeholders? Bridge the Gap. When stakeholders balk at sustainability, educate them! Clearly explain the long-term benefits: cost savings through energy efficiency, positive public image from eco-friendly practices, and potentially higher property values. Showcase successful sustainable projects as inspiration. By demonstrating the financial and reputational advantages, you can turn hesitant stakeholders into sustainability champions, ensuring a win-win for your project and the environment. You've got to get everyone on board and bring them on the journey with you!

Effective communication and education are essential for garnering support and buy-in for sustainable initiatives within your real estate business. Engage with stakeholders—including clients, employees, investors, and community members—to raise awareness about the benefits of sustainability. Provide training programs, workshops, and resources to empower stakeholders to embrace and advocate for sustainable practices.

Educate yourself first. Be realistic about the potential long term benefits, don’t forget any potential disadvantages. With ‘new’ anything there tends to be a ‘blindness’ to potential issues in the future. What may be considered to be sustainable now may not be in time. Using completed projects is key and this is where we see our biggest challenges as the more sustainable projects are often very costly and/or not been completed long enough. We should present evidence as complete as possible and then modelled benefits to a wide range of ‘could be’.

By utilizing financing techniques specifically structured to create present value from monetizing future avoided costs and improving NOI, the merger of energy, real estate, and financing services noticeably increases the overall value of real estate assets. And the energy doesn’t necessarily have to be self consumed through deregulated markets.

Innovation is key and probably where the greatest risks lie. Ultimately expectable risk will be determined by the money, firstly, in the build and then secondly at the exit/refinance. Modular is a great example of being able to show plenty of benefits except viability in many cases. Even at scale we have seen plenty of ‘fails’ within the resi market. Sustainability is full of ‘sound bytes’ rather than actual deliverable solutions. There are many seemingly great products with no provable history. Maybe we are trying to change things too quickly, history is a great teacher.

In this case, we should say that we always tried to change the space of the building from different dimensions, such as the third dimension or the roof and creating a green space known as the Roof Garden, which itself optimizes the space and reduces energy consumption. Absolutely, embracing innovation and sustainability can lead to win-win solutions. By thinking outside the box and integrating environmentally friendly practices into projects, we not only contribute positively to the planet but also enhance the overall quality and appeal of the endeavor. It's all about finding that balance between progress and preservation.

Embrace innovation as a catalyst for driving sustainable change in real estate. Explore cutting-edge technologies, design strategies, and business models that prioritize environmental stewardship and resource efficiency. From green building techniques to renewable energy solutions, leverage innovation to create sustainable properties that meet market demands and exceed expectations.

Re-align your marketing strategy for a better fit with sustainability. This includes customer segments (more environmentally conscious), communication plans, and use it as a competitive advantage.

Another aspect we need to consider is timeline of application. As market currently preferred affordability than sustainability. Phasing the implementation to achieve awareness is crucial

Be aligned always with market trends and adapt for any changes evolved in existing situation. Continuous stakeholders interaction and market connect is very important to be ready for any unexpected changes.

We started the same changes in our projects since 2007 and in 2016 we started to produce software systems that we can participate in all markets with the real estate share sales model, which our systems include ERP and digital real estate ecosystem. Absolutely! Staying adaptable in the real estate market is crucial, especially with sustainability becoming a growing concern. Continuous learning and flexibility allow you to not only meet current demands but also anticipate future ones. Monitoring the effectiveness of sustainable practices ensures you're always aligned with market expectations. Your resilience and willingness to adapt can indeed be a game-changer in the industry, paving the way for long-term success.

Flexibility and adaptability are key traits for navigating the dynamic landscape of sustainable real estate. Continuously monitor industry trends, technological advancements, and evolving consumer preferences to remain agile and responsive. Embrace a mindset of continuous improvement, iterating on strategies and practices to stay ahead of the curve in sustainability.

Seeking for collaboration could get things going. Innovations need time, a joint effort with peers in equal interests could scale up to ready for market solutions. In the mean time, search for incentives, be creative in work arounds and don’t hold up business decisions. But most of all: learn from every step you take and improve decision making on the go. Challenge the market in tenders, you’ll be surprised about the market’s agility.

We’re trying to create an environmentally friendly procurement plan and part of this is to use local trades and locally fabricated materials where possible. Unfortunately in a small re-developing town it can be difficult to get the skills you need at the right price within suitable timeframes to keep your project on track. It’s something we’re working on keenly to the point of which we are potentially going to start our own main contractors and build relationships with local colleges to find apprentices to be guided by a handful of expected trades we have on our books. We’d love to help young people find a career path whilst building a service that aligns with our own goals and ethos.

Beyond the core aspects of sustainability, there are various other factors to consider in the context of your real estate business. These may include community engagement initiatives, partnerships with environmental organizations, resilience planning for climate change impacts, and leveraging marketing opportunities associated with sustainable branding. By addressing these additional considerations, you can enhance the overall sustainability of your real estate operations and maximize positive impact.

Pivot, pivot, pivot!!! Changes in the market are common and will always happen, businesses need to change direction as necessary and be flexible to change. There are riches in the niches, and most professionals who carve out a slice always have food to eat.