Sustainability Versus Regeneration in Real Estate

Sustainability versus Regeneration in Real EstateSustainability and regeneration have quite different definitions. For those in Real Estate, the latter is of particular significance. In this article, I will share my perspective and explain why regeneration holds my attention, and hopefully, it will do the same for you.

?? Words have a way of evolving, and this is greatly influenced by marketing. Both green and sustainability became mainstream in conversation, used by all sectors of business from hotels to construction. The term sustainable is often a choice keyword, whether as a verb, adverb, noun, or adjective. We are still trying to define it, and we have shifted over to ESG. In truth, the context of sustainability depends on what lens or perspective it is being viewed from, but as far as buildings are concerned, here is my attempt at definition.

Sustainability is the design and construction of buildings that will not excessively use natural resources, energy, or ongoing maintenance.

A few bullet points:

·?????? Designed for conserving water and recharging the local aquifers with less runoff.

·?????? Materials are locally sourced to support the region and “fit in”.

·?????? Site orientation matched with climate and local biodiversity is respected.

·?????? Greenspaces mitigate heat islands and excessive trans evaporation.

·?????? Health is promoted with passive light-filled interior spaces, biophilic connections offering exterior green views, and the use of natural materials.

Regeneration, on the other hand, is when we bring or maintain a building or community to a sustainable level. Examples of this can be found anywhere with older buildings, declining neighborhoods, or even entire towns. ?

Here are a few causes.

·????? Materials aging out.

·????? Urban sprawl leaves once vibrant areas behind to decay.

·????? Highways bypassing entire towns.

·????? The design of the building is outdated.

·????? The urban design of the entire area is outdated.

·????? New products and materials are more energy efficient.

·????? Expectations are for healthier buildings.

??While real estate agents look for listings and pay for lead generation, the inventory of property regeneration is growing rapidly. ?

Urban sprawl overflowing into local farmland is no longer a smart solution to the housing demand. In fact, farm fields are especially valuable as they are greenspaces to recharge watersheds and produce food. Regenerating older urban sites are often in prime locations near rivers, lakes, and other natural amenities that the founding fathers valued for hydropower or transportation. As a Real Estate investor or salesperson, staying up to date on what is happening in the revitalization of these properties should be obvious and could be your low-hanging fruit. Here are a few examples.

The work-at-home effect on office buildings; Bisnow

https://www.bisnow.com/baltimore/news/multifamily/baltimore-office-to-residential-conversions-retain-attraction-despite-challenges-118358

Or your mind immediately wonders about those tall Skyscrapers, as I did. Here is a video by “Tomorrows Build” https://www.youtube.com/watch?v=1v3f_Q-ySa4

How to Improve Real Estate Value with Sustainability Investments

https://deloitte.wsj.com/cfo/how-to-improve-real-estate-value-with-sustainability-investments-1415163690

?From old train stations https://livability.com/topics/experiences-adventures/rail-reinvented-8-train-stations-with-awesome-comeback-stories/ ?

?Office space revitalization in Baltimore, Maryland, urban revitalization is a growth area for construction, materials, and no less the real estate industry.

https://conduitstreet.mdcounties.org/2023/07/26/baltimore-city-leads-nationally-in-office-to-residential-conversions/

Are we building better-quality buildings or not?

? In the past, the quality of materials and construction was generally better, but the world changed around them. The volume of new rooftops going up seems to be endless. Are we reducing the quality of buildings to meet the pressures of housing demand? Are we thinking only of the short-term fix with no sustainability concern for the longer run? ?If so, will this regeneration cycle increase from 100-year-old buildings and urban areas to those that need to be reconfigured in 20 years.? Consider what a disaster that would be on natural resources.

? I have seen Facebook groups dishing out negative comments on mass builders producing low-quality but price-friendly homes. Housing developers market housing packages in which the new owners, between closing and moving in, remove entire kitchens just to change a look or improve the quality level. I have also seen construction dumpsters overflowing with perfectly good construction materials, including kitchen cabinets, all these point to unsustainable processes.

Urban planning and project design. (The G in ESG.)

?More and more communities are experiencing roadways filled with choke points from swelling populations. ?Clever drivers are skirting traffic jams by cutting through neighborhoods, leaving walkers and bikers without safe routes. ?This is not to mention the strain on natural resources/environment (E), or the stress on society's health (S). Sustainability governance must come from the top down in a community. ?Having a whole view is imperative, but this is the biggest trick, and not be a silo of expertise or interest. Adding to complexity each community presents unique challenges in geography, climate, and natural assets. Yet you will find sustainability and regeneration on the drawing board of almost all municipalities. A few examples:

nine cities..not from the United States, but we could learn a thing or two. ?https://urbact.eu/9-cities-9-stories-cities-sustainability-governance

In Grand Rapids, Michigan

https://www.grandrapidsmi.gov/Government/Departments/Sustainability

Orlando Florida

https://www.orlando.gov/Our-Government/Departments-Offices/Executive-Offices/CAO/Sustainability-Resilience

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Conclusion

I hope there is no conclusion to this conversation. ?Even Google appears confused by what this means. The keyword competition on sustainability is a page-after-page parade of every large company promoting ESG with their newest self-appointed sustainability officer. ?Marketing at its finest; no wonder the meaning of words is often lost with so many mixed messages. ?Regeneration is an active pathway towards sustainability, an action, not a state of being. I think this term will be harder to spin into greenwashing.

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Note: Both sustainability and regeneration are being viewed through my lens of the environment and housing in this article. Experts, please add your comments and expertise.

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