The promotion of health and wellbeing has become a critical consideration for investors, owners and operators of commercial real estate.  Landlords and property managers are increasingly focusing on ways to create healthy, productive, and happy work environments for their tenants. But why does has this grown in importance as a consideration, and how can these objectives be achieved? Here, we explore why tenant wellbeing matters, the current trends in this space, and provides actionable advice on how landlords and property managers can support tenant wellbeing. 

Why Tenant Wellbeing Matters 

Promoting tenant wellbeing is essential for several reasons. Firstly, it positively impacts the health and, in turn, the productivity of employees which benefits the bottom line of those businesses focusing on this area. A study by the World Green Building Council found that employees who work in green buildings experience a 26% increase in productivity and a 15% reduction in absenteeism (World Green Building Council, 2018). Secondly, tenant wellbeing is a key differentiator in the competitive commercial real estate market. Tenants are increasingly seeking out buildings that prioritise their health and wellbeing (for all the reasons mentioned above), and landlords who can offer these amenities are more likely to attract and retain top talent. Thirdly, measures to promote wellbeing create more inclusive workplaces that enable all employees to thrive, including those with neurodiverse conditions (CBRE & Centric Lab, 2021, BCO, 2022). Finally, tenant wellbeing is a key aspect of corporate social responsibility (CSR) and sustainability initiatives. As companies prioritise their own social and environmental impact, they increasingly look for landlords who share their values and can provide healthy, sustainable workspaces. 

Current Trends in Tenant Wellbeing 

CBRE's 2020 Global Workplace Survey found that 71% of employees believe that their workplace has a significant impact on their overall wellbeing (CBRE, 2020) while our 2024 Office Occupier Sentiment Survey suggested that 83% of occupiers are focusing on sustainable building features(CBRE 2024). This trend is driving a shift towards more holistic and integrated approaches to tenant wellbeing. Some of the key trends in this space include: 

• Biophilic design: Incorporating natural elements, such as plants, natural light, and outdoor spaces, into building design to promote a connection to nature and improve mental health. 
• Wellness-focused amenities: Providing amenities such as fitness centres, meditation rooms, and healthy food options to support tenants' physical and mental health. 
• Sustainable building practices: Implementing sustainable building practices, such as energy-efficient systems and waste reduction programs, to reduce the environmental impact of buildings and promote a sense of responsibility among tenants. 
• Technology-enabled wellbeing: Leveraging technology to improve internal environmental, and particularly air, quality as the key to improving wellbeing and creating restorative and productive workplaces. 

Landlords and property managers can respond to these trends through the implementation of various aspects of biophilic design with some being more easily actioned than others in existing buildings.  Tenants in turn may choose to adopt this approach within their own workplaces to maximise the benefits.  Aspects like improving natural light may be more challenging depending on the building type and appetite for capital improvements, but options around the use of circadian lighting or use of different colour temperatures of office lighting can mimic natural light and yield similar results. These types of project can be considered alongside other sustainability initiatives that might deliver dual benefits of reducing energy consumption (and carbon emissions) while improving internal environmental quality and in turn, wellbeing. 

New developments and refurbishment projects are seeing wellness-focused amenities designed in at the building level while tenants may also consider quiet spaces and healthy food and drink options as part of their space planning. 

When considering the right approach to promoting wellbeing at their properties, landlords and property managers may choose to conduct a wellbeing assessment of the building and its surroundings to identify potential stressors, local amenities, areas for improvement, and opportunities to promote tenant wellbeing. 

Initiatives should be tested through regular engagement with tenants to understand their needs and preferences, ensure there is demand for the proposed course of action, and provide personalised support and recommendations for improvement. Waste reduction programs can serve to reduce the environmental impact of buildings, promote a sense of responsibility among tenants, and be an accessible method of engagement where activity has previously been limited. 

How Leases Might Be Used to Promote Wellbeing 

Leases can be a powerful tool for promoting tenant wellbeing. Some potential ways to incorporate wellbeing into leases include: 

• Wellbeing-focused lease terms: Including lease terms that prioritise wellbeing, such as requirements for natural light, air quality, and access to outdoor spaces. 
• Tenant engagement and feedback: Regularly engaging with tenants to understand their needs and preferences and providing opportunities for feedback and improvement. 
• Incentives for sustainable practices: Offering incentives, such as rent reductions or bonuses, for tenants who adopt sustainable practices and reduce their environmental impact. 
• Access to wellbeing resources: Providing tenants with access to wellbeing resources, such as fitness classes, meditation sessions, and healthy food options. 

To conclude, tenant wellbeing is a critical consideration in commercial real estate investors, owners, and operators, and those who prioritise wellbeing are more likely to attract and retain top talent. By understanding the current trends in this space and implementing actionable strategies, landlords can create healthy, productive, and happy work environments.