New Research Links Fitwel Certification to Stronger NOI Margins

From the CEOFeatured
Written By Janelle Decarreau

INREV case study finds improved net operating income (NOI) margins following Fitwel Certification across Harrison Street's student housing portfolio.

Healthier buildings aren't just better for people. New research indicates that Fitwel Certification is associated with stronger financial performance following certification.

A newly published INREV case study, featuring research from Harrison Street Asset Management, found that Fitwel Certification was associated with improved net operating income (NOI) margins after certification.

Importantly, this relationship remained consistent even when accounting for other ESG investments, including energy efficiency, renewable energy, and green building certifications.

While the findings demonstrate association rather than causation, they provide compelling evidence that investments in health and well-being deserve consideration alongside other strategies intended to strengthen financial performance.

The takeaway: Health isn't just an investment in occupant well-being. It's an increasingly important consideration in evaluating real estate performance.

READ THE FULL INREV CASE STUDY →

Bringing Health Into the Investment Conversation

For years, the real estate industry has evaluated sustainability investments through the lens of operational efficiency and financial returns. Health and well-being, meanwhile, have often been viewed as a "nice to have" rather than a meaningful contributor to financial performance.

This research provides new evidence that health belongs in the investment conversation.

As Joanna Frank, President & CEO of the Center for Active Design and Adai, explains:

"For a decade, we've been able to define a healthy building and measure its benefits for occupants, but the financial case has been harder to make. This research gives investors both a methodology and four years of real-world performance data to see how health investments relate to asset returns. It's time health sat alongside energy efficiency as a core measure of an asset's financial performance."

Although the study focused on student housing, the findings reinforce the growing business case for healthier buildings and open the door for further research across other asset classes.

The takeaway: Health isn't just an investment in occupant well-being. It's an increasingly important consideration in evaluating real estate performance.

READ THE FULL INREV CASE STUDY →

Joanna Frank

Joanna Frank

President and CEO | Center for Active Design

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

 

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