1 Wellness Certification you should be Considering Now
Building confidence to bring employees back to the workplace will become increasingly important as we transition past the pandemic and those portfolios that have pursued Fitwel will have an advantage
The impact of Covid-19 has helped redirect priorities for all of us. Things we took for granted, we no longer can assume. Kindergarten tasks like washing your hands and being aware of your personal space took on new meaning and general heightened awareness of the health of our surroundings surfaced.
As Real Estate owners and operators, we were called to restore trust in the built environment, be that a residential multifamily building or an office building. We are challenged to provide a perception of safety, that you can come to work and not put yourself or your family’s health in jeopardy, or that you can safely enjoy the amenities of the community that you call home. In either case, the strategy must have a foundation of a purposeful strategy.
One such source is Fitwel (Center for Active Design) which published a series of free resources to guide real estate owners and operators through the latest available health evidence. The guides include:
Leveraging buildings to mitigate viral transmission.
Building Trust in the Workplace.
Mental Health and Covid-19.
Density and Resiliency.
Chronic Disease, Equity, and Covid-19.
The guides provide practical suggestions that will help office tenants build confidence for their staff, that when it is safe to return to the workplace, a plan has been implemented to reduce risk. The exact steps taken will vary from building to building, and tenant to tenant, but building that trust with the employees is key.
This is not a time for marketing, perception of risk and levels of trust are interrelated, only those buildings that have evaluated their risks and demonstrated the implementation of a strategy to address that risk will successfully build confidence among the building tenants. One common area to start is transparency. Just as our investors have greater confidence when we fully disclose the climate-related risks and explain what we are doing to mitigate those risks, the same can be said of biological impacts such as Covid-19. Our knowledge is evolving, so it is critical to demonstrate that your strategy takes this into account and has aligned with resources to help ensure that your strategy adapts as our knowledge evolves.
Those buildings that have proactively looked at occupant health and well-being are uniquely positioned to demonstrate not only their concern for the safety of the building occupants but also their access to resources to execute effective responses. Just as LEED helped set a strategy towards the impact of buildings on our climate, Fitwel helps align the built environment with the safety and well-being of the building occupants.
If you are not familiar, Fitwel was developed by the US Centers for Disease Control and Prevention (CDC) and the General Services Administration (GSA) to set standards for design features and operational strategies that supported the health of building occupants. The strategies take a comprehensive approach to occupant health. More importantly, the strategies are science-based and take into account the interconnected systems that impact human health.
Owners of individual buildings or entire portfolios are using Fitwel as a cost-effective strategy to signal to employees, residents, investors, and others that they prioritize safety and wellness and have implemented strategies that prioritize health. This can be a critical distinction, especially in commercial buildings as employees are typically the single largest expense of most organizations. By demonstrating to employers that your facility places the health and wellbeing of their employees as a priority, you gain a competitive advantage, especially when a biological shock occurs such as the current pandemic.
Champions such as Nuveen Real Estate, LaSalle Investment Management, Boston Properties, Clarion Partners, The Bozzuto Group, AvalonBay Communities, and many others have applied this strategy on a portfolio basis receiving several benefits including:
reduced certification rates.
expedited certification review timeline.
access to a dedicated account manager.
targeted training for Champion staff.
recognition of commitment through press and media opportunities.
access to updated materials and resources.
As building owners and operators, we have an obligation to our internal and external stakeholders to identify what potential risks are associated with an asset. You often hear the term “Resiliency” associated with that risk. Resiliency really refers to the ability to adapt successfully to shocks and stressors, enabling the asset to continue to function. Shocks and stressors are the specific impacts that may impact the asset and are typically specific for that asset. I say again, real estate is local, and the potential shocks and stressors for one asset in one region may vary greatly for another asset in a different region. This uniqueness emphasizes the importance for organizations to evaluate each asset and develop a site-specific plan.
While developing an asset-specific resiliency plan may be unique from other sites, the strategic approach taken to evaluate the risk can be more uniform and evenly applied across a portfolio. 5 specific types of natural disasters should be looked at for any asset:
Geophysical (e.g., Earthquakes, Landslides, and Volcanic Activity)
Hydrological (e.g., Avalanches, Hurricanes/Typhoons, and Floods)
Climatological (e.g., Extreme Temperatures, Drought, and Wildfires)
Meteorological (e.g., Cyclones and Storms/Wave Surges)
Biological (e.g., Disease Epidemics and Insect/Animal Plagues)
While an important development in Real Estate Resiliency, it needs to be understood that the Task Force on Climate-related Financial Disclosures (TCFD) emphasizes the importance of evaluating and understanding the risks of climate-related shocks and stressors, so items 1-4 in our list above, but fails to address Biological. Covid-19 has demonstrated that biological events can, and are currently, affecting business as we know it. Had an organization focused only on TCFD and failed to take into account the potential for biological events, they would have been no more prepared than an organization with no resiliency plan. This emphasizes the importance of incorporating a “well-building strategy” when putting together your organization’s other building resiliency strategies.
When it comes to “well-building” certification schemes, there are really two major players: WELL and Fitwel. Both WELL and Fitwel focus on the user experience and the environmental quality of the facility. Both are truly excellent programs that incorporate the health and well-being of the building occupants into the design and operation of the building. There are a couple of differences, however, mainly in price and process.
The Fitwel fees per project are clear and transparent, $500 for registration and an additional $6000 for certification (unless discounted through portfolio participation) while WELL registration fees range between $1,500 to $10,000 depending on the size of the project with additional fees assessed on a per-square-foot basis that range from .42 to .58.
WELL generally will also require the engagement of an external consultant and the process of certification tends to take longer than the Fitwel process which can be done with internal staff.
While each system has its strengths, Fitwel certifications passed WELL certifications in 2019, despite being launched three years after WELL. I would suspect this is largely due to the price and complexity issues noted above.
Both WELL and Fitwel provide opportunities for increased GRESB scoring. Several questions tie into health and well-being where these programs can be leveraged, and both rating systems score points under the Building Certification Aspect. While LEED has historically been the typical response for that section, the updates to GRESB enables funds to use either WELL or Fitwel certification to score points.
In my first formal class in sustainability, I still recall the instructor referencing the three-legged stool that represents people, planet, and profit as the iconic symbol of what sustainability represents. Looking at the potential Fitwel brings a portfolio, it fits well within that framework, especially in times like these.
Those commercial buildings that can demonstrate that the health and safety of the occupants are being taken into account will be the first buildings reoccupied. First, because they are well-positioned to demonstrate trust to the employer, that it is safe to bring back their workforce under certain protocols. Those employees will see evidence of their well-being taken into account and the overall perception of a safer workplace will result.
There is no doubt that the workplace as we know it will be forever changed as a result of the experience of Covid-19. Some changes are good, others not so. We have learned that we can work remotely, and some of us thrived when doing so. Employers will take note, and I suspect that in the future, a higher number of positions will remain remote. It allows for a smaller footprint which reduces the amount of real estate a company needs to operate for the same effectiveness. But when we do gather, doing so in a space that reinforces the perception that the wellness of the occupants is being taken into consideration is likely to pay dividends.
You can help reduce the impact of the built environment by sharing this blog with your peers. Together we can impact the 39% of greenhouse gasses attributed to the built environment. It starts with awareness and we succeed with teamwork.
Stay well!
Chris Laughman is the ThirtyNine Blog author, a blog dedicated to reducing the impact of the built environment. When not blogging, Chris is helping the real estate industry reduce energy and water impact as the Vice President of Sustainability for Conservice, the Utility Experts. Whether Multifamily, Single Family, Student Housing, Commercial, or Military, we simplify utility billing and expense management by doing it for you. Our insight into your utility consumption provides an opportunity to identify risks. Leveraging innovation and experience we ignite solutions with real impacts and track performance to ensure the trendline stays laser-focused on the goal. At Conservice we have developed a true bill-to-boardroom solution to help truly make a difference. We have before us a tremendous opportunity. Standing shoulder to shoulder, we will get this done. Contact me at claughman@conservice.com for more information.
Follow us at:
Twitter: @BlogThirtynine
Instragram: ThirtyNine_Blog