Wellness Real Estate Development Empowers People, the Planet, and Prosperity
Serena Quaglia MA
Leader in the Wellness ?? Real Estate Development ?? City Building space??Powering Healthy, WELLthy Community Wellbeing is my Everything ?? Global Wellness Institute Ambassador
The World Health Organization and the Global Wellness Institute echo the same premise; a key driver of success for the real estate development industry in the future will be sites that deliver wellness (and resultantly well-being),
specifically,
environmental, social, physical, mental, spiritual, occupational, and financial wellness (and well-being),
simultaneously!??
Wellness is behavior/ action that results in well-being (feelings of comfort, joy, calm, satisfaction, certainty, and a good Quality of Life).
So,
what can real estate developers, investors, planners, engineers, architects, landscape & interior designers, construction professionals, etc.
do today in urban, suburban, and exurban contexts,
to ensure financial success tomorrow
(not to mention delivering product that gives consumers driving the booming $5.7 trillion, global wellness industry) what they want and need? ??
Before I answer that question, I have contributed to the preconstruction, residential, commercial, Indigenous, mixed-use, real estate development industry for over 15 years, so can already hear the push-back. ?
“Sounds. Too. Expensive to Build.”
Wait! Stay with me! Why? Because,
I have evidence-backed, quantifiable proof that when developing, engineering, constructing, and marketing a site powered by wellness-centric strategy, financial returns are better.
More on financial returns in a minute,
but first, let’s review the components that qualify as wellness-focused, real estate development attributes.
What are Wellness-Focused Real Estate Attributes?
In wellness-focused real estate development, developers strategically create environments that support mental, physical, emotional, spiritual, occupational, financial, and environmental well-being for residents, tenants, employees, and visitors who will live-work-play there.
I can hear some say,
“Um, no.
Real estate developers develop land (that is, they work with engineers, consultants, and construction professionals/ trades etc. to service the land, preparing Earthworks for underground utility pipes, sewage, water, cabling, etc., in preparation to construct roads, linkages, etc.),
and they hire & manage project teams to design and build buildings, parks, greenspaces, and infrastructure constructed on top of the serviced land.
Developers get in and get out (to maximize financial returns).”
Well,
two things can be true at the same time.
Yes, real estate developers transform the dirt underneath the ground we walk upon, and construct the built form on top of the serviced land we walk upon,
but,
real estate developers are increasingly being mandated to (and by their own choice!), develop and construct sites
that enhance Quality of Life for Humans and preserve the Environment.
What Does Success Look Like?
Wellness-focused attributes are designed to enhance Quality of Life and Environmental Sustainability through healthier living spaces, building technologies, amenities, experiences, and services.
What does success look like, meaning, how can real estate developers deliver environmental, social, physical, mental, spiritual, occupational, and financial wellness (and well-being) in the built environment?
Approaching real estate development focused on resident, tenant, and visitor wellness and well-being requires a multi-dimensional strategy that integrates wellness principles with real estate development processes, urban/ interior/ landscape design, and community engagement.
The key to positioning sites for success?
Conceiving, Implementing, and Executing a Holistic Wellness Strategy Immediately After Site Acquisition is Key.
Practically speaking, what are some considerations when creating a holistic wellness strategy?
? Physical Wellness: Incorporate elements that promote active living, such as parks, walking trails, bike paths, and fitness centers. Emphasize outdoor spaces to encourage exercise and recreation.
? Mental Wellness: Design environments that reduce stress, enhance cognitive function, and promote relaxation. This can include green spaces, natural light in buildings, noise reduction, and areas for mindfulness or meditation.
? Social Wellness: Create communal spaces that encourage social interaction, such as urban squares, co-working spaces, and experiential, community hubs.
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? Emotional Wellness: Produce spaces and places that allow for fun, growth, quiet enjoyment, cohesion, escapism, and laughter.
? Environmental Wellness: Ensure that sustainability and eco-friendly principles are integrated. Use renewable energy, low-impact construction materials, and smart waste management solutions. Design for air quality, clean water, and green infrastructure.
? Occupational Wellness: Design for modularity, reconfigurability, multi-functionality that adapts to changing market demands, tenant preferences, and the evolving nature of live-work-play-learn-grow and retail spaces. ?
? Spiritual Wellness: Implement spaces and places for quiet reflection to enable re-charging and/ or Energy maintenance.
? Financial Wellness: Provide a mixture of commercial uses, on-site co-working spaces and business support hubs; provide flexible leasing options and income-driven rent models; contemplate space for pop-up retail and hospitality experiences; ensure onsite childcare is available.
Spaces & Places That Boost Well-Being
From a practical application standpoint, here are some examples of the spaces & places we are increasingly seeing being implemented into mixed-use/ commercial real estate developments to improve, increase, and enhance wellness (and resultantly well-being):
?? Spaces to Move:
Why? Moving our bodies increases blood circulation, reduces tension, and boosts mental clarity (Source: Stanford University School of Medicine )
?? Spaces to Breathe:
Why? Outdoor greenspaces calm anxiety (Source: 美国加州大学戴维斯分校 )
?? Spaces for Sunlight:
Why? Natural light has an immediate positive effect on mood and energy (Source: 美国亚利桑那州立大学
?? Spaces to Re-Charge the Eyes:
Why? Relieving eye strain to improve focus and comfort is optimal (Source: American Optometric Association )
?? Spaces for Re-Fueling (translation: the inclusion of salad, juice & smoothie bars into mixed-use sites is hugely popular):
Why? Because nutrients and protein are good for the mind, body, spirit (and work deliverables)!
?? Spaces for Laughter:
Why? Stress reduction, tension release, and stronger social connection strengthen collaboration and cohesion (Source: Harvard Medical School )
?? Spaces for Escapism:
Why? Spaces and places wired for nature sounds and binaural beats reduce stress and increase optimism (Source: The National Institutes of Health )
Return On Investment
“Sounds. Too. Expensive,” is a subjective statement.
Yes, I agree that external conditions beyond developers' control like the speed of skyrocketing material costs, interest rate hikes (2022-2024) that impacted borrowing costs, and labor shortages have been very challenging obstacles as of late in many sub-markets across North America, impacting pro-formas, and creating a scenario where construction costs drive decision-making.
But as interest rates ease somewhat, today's inflection point serves as a great moment in time to re-evalutate future development strategies,
...and to be open to adopting wellness outcomes as a guiding principle! ??
Why?
In May 2024, the International WELL Building Institute (IWBI) , presented the following findings at the Global Wellness Real Estate Symposium I attended in New York City, produced by the Global Wellness Summit .
Their thesis, supported by quantified research (including data from MIT Center for Real Estate Research)?
Healthy building strategies and wellness-focused community development are connected to,
? Higher rent premiums in the range of "4.4 and 7.7% per square foot" in the commercial sector
? Increased occupancy rates
? Longer lease terms
? Improved tenant satisfaction
? Enhanced business performance
? Improved employee productiivity
? Appreciation of portfolios
The Take-Away? The Future is Bright
All said, developing real estate with a wellness-centered focus is win-win-win for People, the Planet, and Portfolio Prosperity. ??
Connect or follow for more information about how to benefit from wellness real estate development principles and how to position your site for optimal financial success with wellness-focused marketing strategies!