There has been a lot of stories on the news for decades now about the high cost of health care in the U.S., the brunt of insurance costs borne by companies and organizations. According to one publication, companies and employees now spend an average of $18,000 annually per employee for health costs, a 61% increase in 10 years. And this is likely to grow in the near future, an unsustainable path for business. And that is the direct monetary cost. Additional costs to business include missed work, distraction, bureaucracy, turnover. Ways that a building owner can upgrade its stock that demonstrably will improve the health of the renters’ employees can be shown to be a positive force for the tenant’s bottomline and put your property in great position in the rental market. Even if you move the costs of such upgrades into the tenant’s rent, it is likely to be smaller than the savings in that annual payment for health care.

Now, some of you may be skeptical, but a lot of research has been performed about this and there is no question that a “healthy” building does lead to fewer sick days and higher performance, something that businesses and tenants know are critical for survival. In addition, “healthy” buildings can be cost-effective and produce a strong ROI.

Is there a “magic” or simple formula that will make a building “healthy” and reduce such costs and sick days in a quantifiable? No – at least not right now. The USGBC has developed “WELL” standards which, when implemented, will raise the chances that workers will have fewer sick days, be more focused and productive, etc. WELL buildings are certified that the owner has implemented the most modern, tested strategies to optimize the health of those that use or live in the space. See: https://www.wellcertified.com/en/explore-standard

Consider implementing WELL standards in any new construction or renovation. Perhaps you may not want to go all the way to become certified at this time. But any upgrades you can install that can be shown to improve the health and well-being of the users will put you in a better position in terms of tenant retention or attracting higher level (and higher paying) tenants.

It is critical to recognize that this is not “cookie cutter”. You must begin by understanding each individual property. Is it in an urban, suburban or rural area? Are there other health issues around (contaminated sites or major polluters nearby)? Data is important. What has been the sick day history of previous tenants? Have there been certain patterns?

With this understanding, you can better focus your strategies to those more likely to be successful for more users, whether it be concerning water, air, infrastructure, light, etc.

CCES has the technical experts to help your building become “healthier” by developing the right specific strategies for your buildings and implementing them to the best effect – to increase the odds that users will be healthier, more focused, more productive, and satisfied. All factors to improve tenant retention and attraction and better for your long-term bottom line. Contact us today at 914-584-6720 or at karell@CCESworld.com.