Nathan Florio, advisory principal at Deloitte Transactions & Business Analytics, sat down for a video interview at Nareit’s REITworks: 2024 Sustainability & Social Responsibility Conference, held in McClean, Virginia from Sept. 10-12.
Florio discussed key trends in making the built environment more sustainable. A significant challenge identified is the lack of comprehensive data on properties, often limited to historical utility information. Florio emphasized the need for integrating detailed property data—such as age, location, and equipment condition—to empower stakeholders in making informed decisions about equipment replacement and operational changes to enhance sustainability and drive decarbonization.
Florio also highlighted Deloitte's strategic alliance with Akila, a platform that provides digital twin technology for better property management. This partnership aims to help clients utilize data to make sustainable decisions, with clients reportedly achieving a 20% reduction in energy use through the platform's HVAC and energy optimization tools.
Regarding valuations, Florio noted that many overlook the impact of rising insurance costs and changing building performance standards, which can affect long-term forecasts. Companies that proactively implement sustainable practices and decarbonization strategies are better positioned to maintain or enhance their property values, benefiting from increased rents and lower utility costs.