2025: How Consumer Demand for Health Reset Expectations for Real Estate

From the CEO

Dec 22

What a year.

2025 was turbulent, transformative, and ultimately validating. While macro forces rattled global real estate markets, one signal came through crystal clear: people are driving the market now. Tenants, residents, students, and employees aren't asking politely for healthier spaces anymore—they're demanding them. And the market is responding.

This isn't a trend. This is a fundamental shift in how real estate creates and captures value.

The Evidence Is In

For years, we've argued that health-focused properties would outperform. Now we have proof.

Cambridge University's research confirmed what our clients already knew: Fitwel-certified office properties achieve 4.6-4.8% rental premiums, with average annual rents of $55.26/sq ft—outperforming even WELL certification at $52.53/sq ft.

The value of health isn't theoretical. It's measurable. And in a crowded market full of vague wellness claims and health-washing, verification is the only credible path forward.

That's where Fitwel leads—with evidence, data, and the rigor that earns trust.

Global Markets Are Moving Fast

This year, something remarkable happened: international demand for Fitwel outpaced US domestic demand.

From Brazil's ConstruTALK showcasing science-backed health solutions, to the Global Wellness Summit in Dubai where I joined Aldar CEO Jonathan Emery to showcase how prioritising longevity is shaping real estate development and core infrastructure investment across the UAE and GCC—the message is consistent worldwide. Health is becoming the universal marker of real estate quality.

Let’s see whether the U.S. retakes global leadership in 2026. Here in my hometown, New York City is already setting the tone. Fifteen years after igniting the Active Design movement, NYC reminded the world why it was its birthplace with the release of Active Design Guidelines 2.0—developed through a partnership between the Center for Active Design (CfAD) and the New York City Department of Health and Mental Hygiene.

The original Active Design Guidelines helped bring public health research into the consciousness of designers and developers worldwide, with a primary focus on physical activity. Today, informed by 15 years of additional research and real-world case studies, ADG 2.0 expands that vision—addressing mental health, social connection, and equitable access as essential components of healthy, resilient communities.

We Heard You: Less Paperwork, More Impact

One message came through loud and clear this year: you need efficiency. More time optimizing assets, less time managing certification paperwork.

So we delivered.

Our Smart Scorecard Wizard—Nova—introduced platform intelligence that auto-approves location strategies, and reduces administrative burden—without compromising rigor.

We expanded pre-approved strategies, streamlined dashboards, and simplified documentation across the board. Because certification should unlock progress, not stall it.

Health Delivers Value—At Every Scale

Whether you're certifying a single flagship asset or an entire portfolio, Fitwel delivers results:

Fitwel Star Certification earns full GRESB points for measurable performance
Fitwel Scale (FSP) offers Partial+ recognition across portfolios—delivering credibility, consistency, and reporting efficiency at scale

Our clients' results speak for themselves. Kayne Anderson's portfolio-wide implementation of FSP has increased their GRESB score while directly impacting tenant satisfaction, retention, and resilience—validating the direct link between health strategies and long-term financial performance.

2026: Real-Time Verification, Real-World Impact

Next year, we're taking a major leap forward.

We're deepening our commitment to measurable health impact with a framework built on Light, Air, Sound, and Nature—the fundamental drivers of both human flourishing and financial performance.

In November, we announced a first-of-its-kind data partnership with Awair, integrating real-time indoor air quality monitoring directly into Fitwel certification. This marks our transition from static documentation to continuous verification—paving the way for healthier, more resilient, and more valuable buildings.

2026 isn't about incremental improvement. We're redefining what healthy building certification means for the global market. As we expand toward real-time insights and portfolio-wide adoption, health, resilience, and asset value become inseparable.

Our ambition remains unchanged: to make healthy building certification the universal standard for real estate success.

Thank You

To our Fitwel community—clients, Champions, Providers, and the dedicated teams at Fitwel and the Center for Active Design—thank you.

Your partnership, trust, and leadership prove every day that health isn't a trend. It's a business imperative. And in 2025, you showed the world what's possible when consumer demand meets evidence-based action.

I'm deeply grateful for your commitment to this work. And I'm incredibly optimistic about what we'll accomplish together in 2026.

The market has spoken. People want healthier spaces. Let's give them exactly that.

With appreciation and excitement for what's ahead,

Warm regards,

Joanna Frank

President and CEO | Center for Active Design

President and CEO | Active Design Advisors, Inc. (Adai)

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In Case You Missed It

Joanna Frank, President & CEO of Fitwel, and Rachel MacCleery, Executive Director of the ULI Randall Lewis Center for Sustainability in Real Estate, shared an insightful year-end conversation on the forces shaping real estate, health, and sustainability—and what to expect in 2026.

From shifting ESG dynamics and financial headwinds to the rising demand for verified health performance, one clear takeaway emerged: health, resilience, and sustainability are no longer optional—they’re essential business strategies.

Watch now

Janelle Decarreau