Cushman & Wakefield today released its annual LVSE report titled Social Value — Bringing Worth to Commercial Real Estate in Greater China.
The S in ESG relates to social, and it refers to an organization's ability to satisfy the needs of its stakeholders, including employees, clients, suppliers, and local communities, and ensuring that social justice, equity, and fundamental human rights are sustained.
When considering commercial real estate around the world and in Greater China, and the social side of things, social value is simply when value is produced when commercial buildings and places improve the quality of life of people.
There are a number of reasons why social value in a commercial real estate context is increasingly being taken seriously. Some example reasons include:
- The contribution and size of the real estate sector
- The impact of the COVID-19 pandemic
- Millennial and Gen Z priorities
- Socially inspired investors
When considering social value best practice for real estate, the stakeholder and his/her social value requirements need to be examined. Recognizing these needs can allow for the identification of pertinent interventions and concentrate commercial real estate-related activities and actions in areas that generate the greatest social value.
Taking commercial office buildings as an example, certain metrics, such as building energy and water usage, building floor space efficiency, average building leasing vacancy and average building leasing rental are easily measurable. The level of social value level, however, can initially be a little more of a challenge to measure for commercial building owners.
Assessing positive social value in the built environment often necessitates a more complex method when matched against quantifiable elements. Social Value Portal’s Real Estate Social Value Index (RESVI) is a comprehensive, standardized reporting tool that can assist commercial real estate owners to gauge, report, and augment the social value generated by their currently operating commercial real estate assets. It can help make their social value outcomes that much more tangible.
In the future, impact-focused commercial real estate buildings with a vigorous social value drive and performance will increasingly outperform their peers on so many levels in the long run. This performance will undoubtedly attract a growing number of investors to these commercial properties looking for healthy financial worth and society-related returns.
Shaun Brodie, Head of Research Content, Greater China, Cushman & Wakefield said, “In the future, impact-focused commercial real estate buildings, globally and in Greater China, with a vigorous social value drive and performance will increasingly outperform their peers on so many levels in the long run. This performance will undoubtedly attract a growing number of investors to these commercial properties looking for healthy financial worth and society-related returns.”
Please click here to download the full report.
About Cushman & Wakefield
Cushman & Wakefield is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2023, the firm reported revenue of $9.5 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
