Reasons Why IAQ is Becoming Important in Commercial Real Estate Market

Posted On Thursday, 08 September 2022 20:00

The effects of indoor air quality (IAQ) have become more pronounced in recent years. Apart from increased awareness by building occupants and employers, a Harvard study found strong links between IAQ and physical wellness, employee productivity, and decision-making. As a result, indoor air quality is becoming a crucial part of commercial real estate discussion.

Failing to include IAQ issues during building design and construction has serious consequences. For starters, buildings without certifications don’t attract potential buyers. Fortunately, simple measures, such as being proactive at IAQ management, optimizing building HVAC with the help of Williams Comfort Air conditioning professionals, and adding greenery, can improve indoor air quality. 

What Does IAQ Matter?

Before looking at the effects of IAQ on real estate, below are a few reasons why IAQ is important

  • Americans spend up to 90% of their free time indoors. High concentrations of pollutants are detrimental to their general health and well-being
  • Older adults, children, and people with cardiovascular and respiratory issues are adversely affected by indoor pollution
  • Indoor concentration of pollutants has increased recently due to adoption of synthetic construction materials, pesticides, household agents, and furnishing

Below are a few reasons indoor air quality is important in the current real estate market.

1.  Indoor Air Pollution Affects Building Occupants

The link between indoor air pollution and health risks has become common knowledge. Several scientific studies have confirmed that poor indoor air quality affects individuals, directly and indirectly. The time spent by employees and building occupants further magnifies this issue. Unfortunately, this issue isn’t restricted to special groups, such as children and the elderly. A building’s IAQ affects the general population.

2.  Increasing Health Regulations That Force Compliance

Proactive commercial real estate developers understand the importance of IAQ assurance. Over time, reactive companies will be forced to comply. A study done by Environmental Health Perspectives shows that cognitive functioning suffers when exposed to VOC and increased CO2 levels. These findings attract serious scrutiny from government agencies. Currently, several policies and procedures, such as the New Jersey IAQ and California’s health policy manual, require constant CO2 level monitoring in commercial buildings. The fact that health regulations concerning indoor air quality will increasingly attract more attention is inevitable.

3.  Digitized Real Estate Assets Will Feature IAQ Certifications

Advancing technologies and digitization have continually transformed industries, and the commercial real estate sector hasn’t been left behind. Digitized real estate assets will include IAQ certifications because they will affect property valuation. Due to its impact on the health of building occupants, IAQ certifications are becoming increasingly desirable.

4.  Tenants Will Choose Properties Based On IAQ

With the natural inclusion of IAQ certification on real estate assets, tenants and potential buyers will use these provisions to make leasing and buying decisions. Properties with IAQ certification will become more marketable and in demand than other similar properties without.

Endnote

The basic drivers of the increase in attention towards IAQ are obvious to most people who care about personal well-being. Indoor air quality will increasingly remain an important decision-making factor in the commercial real estate market. Commercial property developers who fail to address IAQ issues risk serious financial consequences. Fortunately, monitoring costs are no longer prohibitive, thanks to wireless devices that deliver real-time measurements.

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