By Jack Douglas, SitelogIQ VP of National Accounts, and Nate Kimes, SitelogIQ National Sales Executive

The electric vehicle (EV) market is continuously evolving and the desire and need for clean energy grows year-over-year. Approximately 1.2M EVs were sold in 2023, making up a 7.6% share of the total US vehicle market, up from 5.9% in 2022. For automotive dealerships, incorporating EVs as a part of their offerings may help to gain market share and increase overall sales. However, automotive dealerships need to ensure that they stay in compliance with EV mandates and regulations set forth by relevant government agencies and automotive industry standards.

Approximately 1.2M EVs were sold in 2023, making up 7.6% share of the total US vehicle market, up from 5.9% in 2022

Top 7 Compliance Considerations

There are many key aspects automotive dealerships should remain informed about to ensure they follow industry guidelines and remain compliant with regulations. We’ve compiled a list of the top EV compliance considerations:

Stay Informed About Regulations: Understand federal, state, and local regulations related to EV sales, charging infrastructure, and other relevant aspects.
Regional EV Adoption: Some regions may have specific requirements for reporting EV sales numbers, incentives claimed, or other data related to electric vehicle transactions. However, regions with high EV adoption may force dealerships to more quickly adopt to the market, regardless of the available incentives or reporting requirements.
Charging Infrastructure Compliance: If your automotive dealership offers EV charging infrastructure on its premises, it needs to comply with local building codes, electrical regulations, and safety standards for the installation and operation of charging stations. As a leading expert in EV charging infrastructure, we can work with through the design, planning, and installation process. 
Incentives and Rebates: Stay updated on any EV incentives, tax credits, or rebates offered by the government or automakers. At SitelogIQ, we can help identify incentive and rebate opportunities to help you achieve your goals and ensure proper documentation and eligibility criteria are met when applying for tax credits.
Environmental Compliance: If your dealership handles battery recycling or other EV-related waste management, you must adhere to environmental regulations and properly dispose of or recycle materials as required.
Manufacturer Guidelines: Follow any specific guidelines provided by EV manufacturers regarding sales processes, customer support, and service procedures.
Sustainability Initiatives: Beyond compliance, automotive dealerships can adopt sustainability initiatives, such as implementing green practices in your operations and facilities, to demonstrate their commitment to promoting EVs and environmental responsibility. This could include LED lighting, renewable energy, and more. 

How SitelogIQ Helps Automotive Dealerships

Compliance requirements can vary based on the region and can change over time. Therefore, it is essential for auto dealerships to stay proactive in your efforts to remain compliant with EV-related regulations and standards.

At SitelogIQ, we partner with the nation’s largest auto dealerships and provide them with electric vehicle charging solutions as well as comprehensive lighting, energy, battery storage, and solar photovoltaic (PV). We recommend, install, and maintain — without brand bias — the right equipment and systems for today’s high-performance requirements.

Contact us to discuss your auto dealership’s facility’s needs.

by SitelogIQ

From working around your educational and athletic schedules, to implementing safety precautions – construction at K-12 school districts may involve additional considerations and planning to ensure work progresses safely without disruption to your curriculum. Limiting your construction schedule to the summer months may be the best option for your district. Our experts are breaking down the pros of summer construction and what to consider when selecting your school construction timeline.

The Pros of Summer Construction

1. Ensure Safety of Students and Staff

The safety of your students and staff, and community as a whole is of the utmost importance while construction activities are ongoing. With limited students and staff on campus during the summer months, it’s easier to ensure safety on site. In addition, school summer activities may be able to be scheduled away from the construction site for continued protection of your students and staff.

2. Minimize Disruptions

By completing construction during the summer months, K-12 districts can help minimize disruptions to their learning curriculum, sports schedules, extracurricular activities, traffic patterns, and so on. In addition, holding construction activities during summer also helps avoid disruptions during peak exam periods, graduations, back-to-school nights, parent-teacher conferences, assemblies, and other significant school events.

For the construction crews, summer construction also allows them to work more efficiently without the need to schedule around these daily school activities. The summer may also allow for an easier process for utility shutdowns when buildings aren’t fully occupied.

3. Avoid Weather Delays

Extreme temperatures, heavy rain or snow, and strong winds can affect the quality and pace of construction work. By scheduling a project during the summer when the weather is generally mild or more stable, may help to reduce delays from inclement weather.

4. Improve Scheduling

As mentioned earlier, construction during the summer helps to minimize disruptions but it also makes it easier for construction crews to schedule construction activities such as deliveries, equipment staging, etc. as they don’t need to schedule those around planned school activities.

Darcy Brenner-Smith, one of SitelogIQ’s Senior Business Consultants who previously served as a K-12 School Business Official also shared that “School administrators and staff have more time to plan for occupancy of a new or renovated facility over the summer.” This includes coordinating furniture and equipment installations, communicating with internal and community stakeholders, updating or configuring traffic patterns, completing systems training for new technology, and implementing maintenance plans and safety protocols.

While summer break may be a favorable time for construction activities, it’s important for school districts to keep in mind that these projects need to be planned far in advance to allow the compacted construction schedule to be completed in time before a new school year begins. Permitting, labor shortages, and supply chain issues are all obstacles that need to be worked out ahead of a project to ensure that it remains on schedule. Mike Rubino, SitelogIQ Senior Project Manager, shared that summer construction projects ideally should be under contract by the end of the previous summer. That means now is the time to begin your preparations for next year’s summer project.

“Planning well in advance and consulting with your district’s design professional on optimal bid timing will go a long way to mitigate unforeseen delays and ensure a smooth transition into occupying your new or renovated facility.”

– Darcy Brenner-Smith, SitelogIQ Senior Business Consultant and former School Business Official

Your K-12 Construction Partner

At SitelogIQ, we partner with our customers in K-12 public and private schools to enhance the learning environment. We have spent several decades partnering with school districts throughout the U.S. to bring comfort, functionality, and efficiency to the classroom through our K-12 school construction and related solutions.

We believe that every district is unique. That’s why we will take the time to thoroughly understand your district and community needs to best develop a project plan that fits your educational goals, both now and well into the future. Contact us today to learn how we can help deliver your next project.

High prices, material shortages, months-long material lead times – all of these have plagued construction sites, especially in the last few years. While the industry has seen supply chain issues rise and fall, one thing that’s for certain is there’s no anticipated finish line to when they will subside. At SitelogIQ, our experts have a deep understanding of current supply chain trends and what steps to take to ensure our projects continue on schedule and within budget.

Today’s Supply Chain Issues

From HVAC and electrical equipment to thermostats and emergency generators, many projects have been impacted by a range of supply chain issues. We’ve compiled a list of today’s most common materials with long lead times and/or increased prices:

Long Lead Times

Electrical and controls components, including switchgears and panels
Emergency generators
Door access card readers
HVAC equipment, including chillers, boilers, and RTUs
HVAC controls – long lead times
Water coolers – long lead times

Increased Pricing

Glazing for windows
Stainless steel items, such as kitchen equipment

Each of these supply chain issues can result in higher project costs or delayed construction or both. For projects with tight budgets and strict schedules, such as K-12 school districts with limited funding and project schedules, particularly during the summer months before the school year begins, the project team must be able to quickly address the ongoing supply chain issues and provide solutions for owners while still delivering successful outcomes. Here’s how SitelogIQ is doing just that for our customers.

SitelogIQ Supply Chain Approach

Though it may sound like a simple solution, advanced planning is by far the most important and first step that our team takes to address potential supply chain obstacles. For materials with higher pricing, our team may recommend alternative solutions at a lower price to help maintain the customer’s budget. And for project materials with long lead times, our experts connect with manufacturers we have built strong partnerships with early on to capture anticipated delivery times and place orders earlier than usual to ensure that all necessary materials arrive on time.

However, even with advanced planning, the delivery of equipment or other materials may still be delayed. In that case, our team works with the owners and other contractors to quickly adjust the project schedule so other work can continue until those delayed pieces arrive.

While some supply chain issues have improved over the past year, others still present project challenges. SitelogIQ has moved our customer engagement and project engineering much earlier in the project cycle to account for increased delivery times. We work closely with our customers to identify long lead times and with our subcontractors to place orders much earlier in the delivery process than we used to. We also monitor delivery times with our subcontractors as we may have to shift resources if a product delivery will be later than planned. Good communication with our clients and our subcontractors is vital to keeping the project on track

– Brian Carroll, SitelogIQ VP of Operations

Another key solution is constant communication. With owners, contractors, manufacturers, and other partners, our team stays on top of communicating any changes or needs in order to quickly adapt when addressing supply chain issues. It feels like something is missing here. How do we communicate – method, frequency, with whom, etc?

Advice for Owners

While these are obstacles our team is noticing today, it’s important to keep in mind that supply chain issues seem to change all the time based on market conditions. They’re a moving target; as some materials start to lower in price and lead time, others increase. However, it’s not known just when the industry will begin experiencing fewer supply chain issues, so it’s important for owners and project teams to always be prepared to address potential obstacles and pivot quickly to find solutions. Here are a few ways owners can be prepared for their upcoming projects:

Begin the design process earlier than before; this will provide additional time to look ahead at the current pricing and lead times of materials and equipment and make plans or adjustments as needed.
Be open to pre-purchasing of equipment prior to the project being designed. This flexibility will help the project team be equipped with alternative solutions should they run into limited availability or long lead times for equipment.
Be open to a large variety of manufacturers that meet the design intent. While you may have preferred manufacturers, their availability may constantly change. It’s important to be open to other manufacturers, especially those with whom your project team has built strong relationships, to ensure you secure the equipment and materials needed for the project, and that those products are within your budget and schedule.
Be ready to adapt if products don’t arrive on time. Even with the best-advanced planning, unknowns can occur that delay the delivery of products. This may require adjusting the project schedule to keep other work continuing until those products arrive. Flexibility to quickly make these adjustments will help keep your project on schedule.

At SitelogIQ, our team of facility experts has successfully overcome various project challenges due to supply chain issues, ensuring that we meet their budget and schedule. From K-12 schools, higher education institutions, healthcare facilities, local/state government buildings, multi-family homes, shopping centers, warehouses, and offices, we understand that each project is unique. We work closely with you through each step of the project to ensure we exceed expectations. Contact us today to learn how we can partner with you making your buildings better.  

Today’s investors are changing. Decades ago, investors wanted to see positive profit reports from companies and projections for even more monetary increases in the future. But as the years have passed, investors are shifting their priorities. Now, they want to invest in companies that emphasize ESG practices that build risk resilience and long-term success.

ESG and sustainability are related but refer to two different concepts. Understanding ESG vs. sustainability and how they impact investors’ decisions in today’s markets can help your business follow best practices for positive outcomes.

What Is ESG?

ESG stands for Environmental, Social, and Governance. It is specific and data-driven, making it useful for investors who want to see factual proof that a company is doing what it says it is doing regarding “going green” and being a responsible steward.

Unfortunately, companies can exaggerate their ESG efforts. This practice is known as “greenwashing.” Companies can have values and practices that look good on paper, but proving the effectiveness of these strategies can be difficult. Investors want to reduce risk when it comes to where they put their money.

ESG gives investors an objective framework using verifiable statistics to prove the validity of a business’s environmental, social, and governance efforts. An ESG strategy can also give companies a structure to follow to help them implement the right practices and attract investors whose priorities align with theirs.

To fully understand ESG, you need to know what each dimension covers.

Environmental

When most people think of sustainability practices, they think of the environmental dimension of ESG. This aspect focuses on improving a company’s environmental performance. This can appear in various ways:

Complying with environmental regulations
Reducing Greenhouse Gas Emissions and carbon footprint
Energy Management
Waste management
Managing climate risk
Making efforts to give back to the environment and make a positive difference

The environmental dimension of ESG encompasses balancing the environment, the economy, and equity across all packaging, products, and facilities within a business. It includes energy usage and waste, ensuring a business is taking action to reduce its potential contribution to climate change.

Social

The social aspect takes ESG a step further than other corporate sustainability models. The social dimension of ESG focuses on a company’s impact on its customers, its employees, and the community in which it operates. Here are some examples of social responsibility in businesses:

Workplace safety
Labor practices
Diversity and inclusion in the workforce
Employee engagement and happiness
Data protection and cyber-security throughout the business
Customer satisfaction

ESG’s social component measures companies’ various social activities and disclosures. These factors help investors determine if a company cares about labor standards, human rights, and its employees’ workplace health and safety. The social dimension of ESG also looks at how much a company does for the well-being of its community.

Governance

A business is only as good as its authority network. That is why the governance aspect of ESG focuses on the structure and leadership of businesses, which can include the following factors:

Leadership diversity
Leadership compensation
Code of conduct
Business ethics 
The shareholders’ roles, influence, and involvement
How the company handles audits

Investors know that the governing influences of a company directly influence the company’s success and growth. Understanding more about these factors can give investors critical insight into the risk of engaging in business investments.

What Is Sustainability?

Sustainability is a broad term that can encompass a company’s economic efforts towards long-term growth and operational resiliency while aiming to reduce its environmental impact. In addition, social sustainability can refer to promoting gender equality and creating good jobs for people within a community.

Yet, depending on its goals, sustainability can mean different things to different businesses. A company’s sustainability framework is its own concept with its own definitions and sustainability goals. This broad scope and personalized meaning can even leave employees wondering what exactly their business’s sustainability efforts are.

In short, sustainability is a good first step. It shows that a business cares about its influence on the people and the world around it. But its definition can evolve, making it hard for investors to predict a business’s future risk.

The Difference Between ESG and Sustainability

The main difference between ESG and sustainability is measurability. ESG offers statistical, data-driven information that investors can use to truly understand a business’s environmental, social, and governance priorities. On the other hand, sustainability is vaguer, offering little structure to measure in any objective way.

As you read above, depending on its goals, sustainability as a focus area can vary from business to business. This makes it of little use to investors looking to minimize risk. ESG provides specific criteria in the form of environmental, social, and governance dimensions. Third-party organizations exist to offer unbiased ESG ratings that compare different businesses within the same industry. This allows investors to know how a company performs in its ESG efforts.

Why ESG Is Here to Stay — Data-Backed Benefits

By now, many companies and organizations are adopting an ESG framework because of its many benefits, including the following:

Align with customer values: Customers are changing how they shop and the types of businesses they want to support. As a result, companies are changing their approach, and you need to ensure you’re staying in step with the competition. According to KPMG, 71% of CEOs believe they are responsible for ensuring their ESG policies align with their customers’ values.
Gain investors: Major banks and investment firms like BlackRock have begun adding ESG investing criteria to their products and processes.
Experience future growth: Deloitte reports that half of all professionally managed investments could be ESG-mandated assets by 2025. This could total $35 trillion.

Choose SitelogIQ to Help You Reach Your ESG Goals

SitelogIQ has the solutions you need to reach your ESG goals. Come to us for our consulting and planning services, and we can help you create an effective ESG strategy for your business. We can also help create a master plan to set you on the right path toward achieving your sustainability goals.

Contact us today to take the next step toward experiencing the benefits of an ESG strategy for your business.

Your facility generates data every day. What are you using to capture this information in a digestible way and applying it to your decision-making processes? Enter an era of greater efficiency, productivity, and predictability by using data for facilities management.

What Is Facilities Management?

Facilities management deals with maintaining and improving the functionality, comfort, and safety of building space, grounds and infrastructure affecting the experience of visitors, customers, employees, or other relevant parties. These best practices involve several factors, including the following:

Resource coordination
Space use
Delivery of support services 

The people in your facility expect a supportive, comfortable experience. You can give this to them with proper facility management practices. But a lot must go on behind the scenes before facility users can benefit from your efforts. You need to understand the data behind your actions to deliver the best results for your facility and its users.

Benefits of Data-Driven Facilities Management

You can gain unprecedented positive results by transforming your facility management into analytic data. Here are some of the advantages of data-driven facilities management.

Optimize your space: Whether you have teams of employees taking turns coming into the office or you want to ensure everyone has adequate room for their activities, data-driven facilities management can help you use your building’s space to its fullest potential. 
Enhance workplace experiences: By implementing data wisely, you can foster a productive and comfortable facility for employees, users, and customers alike. 
Easily manage maintenance and operations: Managing your operations and maintenance needs across several facilities can be challenging, but data-driven facilities management can simplify the job. Track your assets’ maintenance schedules, extending their useful life span in the process. Keep better tabs on your inventory, streamline cleaning schedules, and know when to perform maintenance. 
Gain valuable data insights: With the right data-driven facilities management solution, you can gather evidence-based analytics and insights to help you improve your daily operations and make actionable predictions. 
Increase safety: Data-driven facilities management can ensure your space is safe and follows all necessary regulations. Having a record of tracking your facility’s safety also keeps you accountable. 

Why Collect Facilities Management Data?

Benchmarking your operations is the first step toward energy-efficiency. You need to review beneficial information about your facility and what goes on within it before making any changes. Facilities management data lets you quantify your workplace to get essential details to guide your decision-making.

With the data gathered through this process, you can confirm inefficiencies or discover new ones you were unaware of. Use the information to find operational strengths and build upon them. Then, you can test your hypotheses or create new ones to enhance your facility.

Different Types of Facilities Management Analytics

Managing large amounts of data from multiple sources requires analytics to turn your data into information.  Analytical facility management can give you various pieces of helpful information for reaching your goals. Here are the four different analytics in data-driven facility management.

Descriptive: Descriptive analytics highlight or describe a specific trend in your facility. 
Diagnostic: Diagnostic analytics can help you determine what is causing or driving revealed trends. 
Predictive: Predictive analytics forecast new trends and help you predict future occurrences. 
Prescriptive: Prescriptive analytics give you data-driven insight into how you can influence new trends for better, more desirable results. 

By using each of the above analytics, you can make progress toward achieving better facility management outcomes.

Key Data Every Facility Manager Should Track

Many workplace data points can prove beneficial to your facility’s management. Here are five examples of metrics you can track to improve the effectiveness of your team, and support a comfortable and energy efficient facility.

Work order response times: Discover how long it takes to complete work order requests using diagnostic analytics. Then, tap into prescriptive analytics to determine ways to improve your response times. 
Space occupancy levels: Data-driven management can reveal your facility’s max occupancy with descriptive analytics, giving you a better understanding of how to use your space and maximize your footprint. 
Maintenance schedules: Reactive maintenance puts you behind the curve of your assets’ repair needs. With analytical, data-driven insights, you can plan proactive maintenance to keep your assets working properly, extend their useful life, and decrease downtime. 
Cost per repair: Use descriptive analytics to determine your repair costs, which will help you plan your facility maintenance budget with greater accuracy. 
Energy usage: Energy is one of most facilities’ highest costs. Diagnostic analytics can help you determine what parts of your facility use the most energy. Use predictive and prescriptive analytics to find new ways to reduce costs and increase your facility’s energy efficiency. 

Areas Where Data-Driven Facility Management Improves Internal Operations

The goal of data-driven facility management is to streamline operations and improve user experience. Here are some areas where this data can help you enhance internal processes.

Equipment performance: You rely on your equipment daily. A data-driven facility management solution can give you insight into your essential equipment to ensure the best performance , and plan for its replacement.
Energy usage: You want to reduce costs and make the most of the energy your facility uses. With data analytics, you can minimize wasted energy and maximize efficiency throughout your facility. 
Data sharing: Different people in your facility may need to work together for the best outcomes. You may also be managing several facilities at once. With streamlined data sharing, the appropriate data can go to the correct people for greater efficiency and accuracy. 
Automation: Combine your data-driven analytics with modern automation to ensure your facility stays adaptive and efficient across your operations. 
Proactive maintenance: Use data to stay ahead of malfunctions and costly repairs with preventive maintenance routines. 
Efficient asset management: Your facility has a lot of capital invested in its assets. Use the data you gather to ensure you are managing those as efficiently as possible. 
Labor management: Ensure employee schedules and activities can facilitate the best outcomes for them and your facility. 

Learn More About mySiteIQ Data-Driven Facility Management Solution

If you are a facility owner, SitelogIQ has the data-driven facility management solution you need to experience all the benefits of using your data to your advantage and help make the decision-making process much easier. Make our mySiteIQ  platform an essential part of your master facility plan through all of your facility stages, helping you streamline your long-term facility maintenance for the best possible results.

We serve various markets and industries and can deliver a solution perfectly fit for your facility’s needs. Contact us online to learn more about how our solutions can help you identify high-priority projects and manage multiple projects with different funding sources.

Schools help students develop life-long skills and create a foundation of knowledge that will help them succeed in adulthood. Today’s students are learning differently, and teacher instruction has had to adapt to meet ever-changing needs. It is critical that schools continue to adapt to these changes and recognize the importance of adopting collaborative learning and technology solutions to prepare students for their futures.

Future-ready education environments are designed to facilitate critical thinking, creative problem solving, collaboration, and communication. These spaces allow students to gain new skills and sharpen existing ones.

What Is a Future-Ready Learning Environment?

Future-forward schools foster a personalized, flexible approach to education — with robust technology — to better prepare a student’s fundamental attributes and proficiencies. This framework replaces a traditional model with innovative approaches, providing children with the tools they need to be successful and resilient individuals. A fundamental aspect of this framework allows children to develop core skills, including numeracy, literacy, and science.

Additionally, future-forward schools focus on developing technological, civic, and cultural literacy, helping children understand the world around them. K-12 school future readiness also places a strong foundation on critical thinking, collaboration, and communication skills to help students learn how to solve problems productively.

Future-ready classroom design helps educators prepare students with the ability and passion to succeed. Traditional classrooms continue to evolve into collaborative zones, providing immersive educational environments to keep teachers and students productive and engaged. Design solutions emphasize goal setting and providing personalized instruction for students. These design solutions also include sustainable models for equitable and flexible learning opportunities for each student. Design solutions emphasize goal setting and providing personalized instruction for students. These design solutions also involve implementing sustainable models for equitable and flexible learning opportunities for each student.

A future-ready environment prepares students to succeed in a technology-driven world that will require them to be problem-solvers, creative thinkers, and have the cognitive flexibility and emotional intelligence that is expected to help answer tomorrow’s questions. They also create deeper educational experiences for students while providing them with opportunities to apply their skills in real-life situations. As the learning landscape evolves, facilities must adapt to enable effective instruction and flexible learning experiences.

How to Transform K-12 Facilities

Traditional classrooms are arranged in a one-to-many layout, with students in their assigned space and the teacher spending much of the time in the front of the room. Modern classrooms are more dynamic and flexible in design. Based on the curriculum, learning style, and group interaction, the classroom space can be reconfigured as needed. Students are more engaged, and teachers act as facilitators, moving throughout the entire room as needed.

Research continues to highlight flexible classrooms as a way to promote quality education. For today’s learners, K-12 facilities must foster a productive environment by creating an actionable development plan:

Identify the skills on which to focus. School leaders should consider beginning the process by determining critical skills that students will need to succeed and assess the current curriculum. At this point, actionable and measurable goals can be created to act as the framework for the path moving forward.
Assess current facility conditions. Now that you know what and how you want students to learn, do the existing spaces in the school support the educational goals? If not, can the spaces be reconfigured to provide the atmosphere needed? Since technology is integral to class curriculums, does the school have the infrastructure needed to support (and protect) the devices it houses? This may sound daunting, but with the advent of mobile devices, space may be something that may be easier to manage than in the past. Computer labs can now become classrooms, for example.
Create a development plan: Teachers will need to be the students at this point in the process. An important aspect of transforming how teachers facilitate instruction means equipping your team with the tools and training needed to succeed. All outcomes and teaching structures should map the result of student-led learning.
Provide equitable access to resources and technology: All students require equal access to resources, information, and technology to achieve their full potential. Technology continues to become pivotal for students, allowing them to cultivate additional skills and access many online resources for learning.

What a Future-Ready K-12 School Looks Like

No two schools should look the same. Before implementing a development plan, it is essential to identify what a future-ready environment looks like for your community. By understanding the unique needs in your community, you can begin thinking about the district’s strengths, weaknesses, and areas that need to be transformed or reconfigured to foster critical interaction and educational needs.

One of the most fundamental aspects of an effective future-forward environment is providing research-based learning strategies to help students achieve their full potential. While each environment is unique, many of them share similar characteristics.

Common elements of progressive and productive future-ready school districts include:

1. Safe/Accessible Outdoor Play

Outdoor spaces provide additional opportunities for intentional learning activities, communication, and creativity. Imaginative, interactive activities can increase student interest and concentration, getting them ready to learn. Students are often more attentive and engaged following an outdoor lesson.

Of course, outdoor play still requires structure to be accessible and safe. While outdoor recreation is about creativity and fun, it can also help students achieve school-related goals. Students also gain valuable communication and teamwork skills with outdoor play.

Students can learn the importance of working with others, communicating, and building meaningful relationships. Social and emotional skills are pivotal for students. These qualities will grow with them, translating into tangible, valuable tools in the workforce.

2. Learning Space

The functionality, health, and comfort of a learning space can play an important role in students’ success. The freedom of choice within an environment can also promote efficient and engaging learning. If students are provided with structured options of how or where they work, they are often more likely to feel inspired and engaged. Your facility can offer students various working environments, seating styles, and more to engage learners.

Comfort also plays a vital role in the learning process. While it may be easily overlooked, discomfort caused by poor air quality, lighting, temperature, and classroom layout can distract from a child’s ability to focus and learn. When students are comfortable in their surroundings, they are also more likely to focus on the work or task at hand, minimizing potential distractions like repositioning or finding a more suitable location.

Research shows when students are comfortable and engaged with their learning spaces, they become more active in the learning process. It is also helpful when a classroom fosters a range of teaching methods, student needs, and learning activities.

3. Learning Technology

Technology can accelerate learning, providing students with unique opportunities and easy-to-access information. Districts should focus on technologies that most benefit students and teachers, including the infrastructure this equipment needs. Schools should keep connectivity ports, electrical outlets, and other infrastructure elements in mind.

An optimal environment enables children to access and recharge technology anywhere in the room for undisrupted learning. While learning technology is important to students, teachers can also experience many benefits from technology, including providing more detailed and alternative instruction and faster feedback.

Since technology is essential to productive learning, students and teachers need the resources to ensure they gain the competencies required to leverage the hardware and software. This is particularly important with the advent of distance learning which is now part of the education landscape.

4. Learning Environment

While a classroom should prioritize the teacher-student relationship, learning is also a social activity. A future-ready facility should foster positive interaction and teamwork between students, teachers, and peers. An ideal learning space allows students to work both independently and collaboratively.

One way to promote this learning style is to use versatile furniture, such as mobile tables or desks that can be arranged for flexible group sizes. Moveable partitions can expand and contract classrooms and common areas to accommodate school and community activities.

Creative materials and design elements encourage exploration and help students understand the connection between work and achievement. Learning should be fun and today’s evolving educational approach is proving that to students.

5. Safe and Secure Environment

Finally, a classroom must be safe and secure, allowing teachers and students to focus on learning. While we may initially think of public safety, which is paramount, a safe and secure learning environment also means access to healthy water sources, clean air, or brightly lit public spaces.

A productive environment promotes creative and social learning, minimizing unsafe experiences, such as poor ventilation, inadequate lighting, poor indoor air, and unsecured entrances or exits. These experiences can harm students and distract them from their education. If basic safety requirements are not met, students will feel uncomfortable, less engaged, and unmotivated to show up to class.

Security isn’t limited to classroom conditions. Today, digital safety is a vital aspect of any plan. Teachers and students alike should have the training and resources needed to safely use technology and the internet. A student’s digital safety is just as important as physical and emotional safety.

SitelogIQ Future Forward Design

At SitelogIQ, our team of experts partners with clients in K-12 public and private schools to foster a positive learning environment and ensure each facility can provide students with future-ready opportunities and equity in education. Over several decades, we have teamed with many school districts throughout the country to create equitable, functional, efficient, comfortable, and forward-thinking classrooms.

Our team understands each school district is unique and requires a customized solution to help their facilities meet educational goals while remaining within budget. Our comprehensive analysis includes but is not limited to:

Enrollment, Capacity, District Boundaries, and Grade Configuration

We work directly with K-12 administrative teams to create and implement various project plans to promote efficiency and high-performance levels in learning facilities. Our team can help a facility use innovative technology, maximize the utility of its space, account for safety, and provide in-depth training to facility management.

One of the first aspects of our comprehensive analysis is to assess enrollment, capacity, school district boundaries, and grade configuration to find any area for improvement. We help administrators assess current and projected district information so decisions can be made about short- and long-term needs.

As an example, some districts may be facing declining enrollment, so they don’t need to build another school. Instead, they may decide to reconfigure existing space and revise their curriculum to better match the types of careers available for students in their region.

Student and Community Activities

Next, our team can assess student and community activities. Often, schools are the heart of the community, and many of the facilities serve as community resources. Research indicates many social and academic benefits of student and community activities.

Students who regularly participate in activities are often more motivated and likely to show higher engagement and classroom participation. These students are also less likely to drop out of school or experience severe disciplinary problems. The benefits of student activities may even be more significant for at-risk or unmotivated students.

Community Use and Multi-Functional Capabilities

School districts continue to realize the importance of converting schools into multi-functional community centers with numerous capabilities by expanding their functions. Learning facilities are also reconsidering their role within local communities and ensuring their space is multi-faceted and functional. Some districts may even realize a new revenue stream when they create spaces to host events and activities.

Programming Changes

Finally, our team will assess your current programs and recommend potential changes. Efficient programming changes allow your facility to maximize its functionality and increase student engagement.

K-12 students benefit from collaborative programs and flexible learning spaces that resemble studios or workplaces rather than traditional classrooms. Altering the physical environment and programming can provide students with the flexibility to support future-ready learning.

SitelogIQ Recent Projects

At SitelogIQ, we are a team of designers, analysts, engineers, former educators, planners, and project managers dedicated to improving schools. We offer a unique set of experiences, skills, and backgrounds that allow us to deliver the highest level of service and exceptional outcomes for clients. We consider the education, physical, and financial impact of any facility improvement measure so our recommendations positively impact the learning environment.

We do not work in a vacuum. Our clients are actively involved in the process. The school leaders, staff, students, and community members know their district better than we ever will. What makes us different is that we listen. We don’t offer the same solution to every district because every community is unique. We collaborate to design and implement plans tailored to each district’s needs.

Some of our recent projects included:

Learner-based communication labs: The more students focus on their screens, the more likely they struggle with communication. In the lab, students practice activities including public speaking, presentations, small group interaction, practice interviews, and roleplaying. These skills are vital for both personal and professional growth.
Future-ready career and technical education (CTE) areas: CTE helps prepare students for college or work. Unlike vocational training in the past, the scope of CTE is much broader and allows students to learn new skills as they investigate potential career paths. While many CTE students move on to some sort of post-secondary education, other students who choose to move right into a career are equipped with a set of marketable workplace skills. Since CTE can include extensive career options, our experts can help districts determine those to include in their curriculums, typically based on the needs of the regional job market.
STEM laboratories: This hands-on, problem-based education is meant to help students become innovative and critical thinkers. What they learn gives them the ability to solve real-world problems. Like CTE, STEM helps students explore and build skills that will benefit them throughout their lives. We can create custom solutions and unique approaches to find the space and equipment required based on the available budget.
Flexible teaching spaces in common areas and cafeterias: With school space at a premium, we can help turn underused areas into functional, flexible spaces. Some schools have wasted space in hallways that can be converted into break-out spaces for nearby classrooms or individual study areas. Cafeterias can be designed with movable walls, chairs, and tables, so they can become dining areas, classrooms, or large meeting spaces. Public use of school facilities seems to be increasing and districts can leverage this need by renting spaces, further maximizing facility occupancy.
Future-ready media and library spaces: Libraries, once quiet research destinations, are turning into library media centers that can act as student study and collaboration spaces during the day and host board meetings after hours. Many libraries become the focal point of the school and are busy the entire day, partly because they’re designed with a coffee house feel to be warm and welcoming. Since there are many different styles of learning, the space should reflect this variety. Our team can help blend the technology needed in this dynamic space with a flexible configuration to accommodate everything from individual study pods to large group seating.
Alternative funding opportunities: Funding and financing options are essential aspects of all projects. We help facilities find funding options for their specific projects or needs, including alternative funding opportunities to implement projects with little to no upfront expenses. For example, many districts benefit from a comprehensive energy audit. By implementing improvements that have the greatest return on investment, districts can significantly reduce energy costs and redirect those funds to student-centered initiatives.

Efficiency Powered by Intelligence

SitelogIQ is a full-service facility planning and energy efficiency company that creates, improves, and maintains healthy and safe working spaces, learning environments, and multi-unit living spaces. Our experts provide comprehensive knowledge of all aspects of facility design, planning, and management.

We provide comprehensive facility solutions that support energy-saving, future-proofing, and sustainability goals. Some of our most popular solutions include consulting and planning, commissioning, and lighting and technology controls. We are proud to serve many markets, including the federal government, healthcare field, higher education, and more.

Contact us to learn more about our solutions or call us at 888.819.0041 for assistance.

A sustainability program is a strategy that outlines how a business will succeed in the future based on factors such as supply chain operations, energy consumption, building materials, and more. This type of program streamlines the organization’s approach to reaching its operational goals while having a measurable impact on people and the environment. 

An efficient sustainability plan focuses on eco-friendly changes and development to promote business growth and realize cost savings. These programs are a fundamental part of any business looking to evolve and grow.

Below, we will discuss what a sustainability program is and how organizations can get the most out of their corporate sustainability programs to meet stakeholder demands, achieve sustainability goals, and stay competitive.

How Sustainability Programs Create Value

Through corporate sustainability programs, businesses realize cost savings, supply chain security, and increased customer loyalty. Additionally, they can mitigate certain risks, enhance overall brand value, allow access to new markets, and help the environment.

While sustainability plan improvement is key for businesses, it is also an important aspect for many company stakeholders and consumers. According to a 2018 Nielson study, 87% of consumers would purchase from a company based on corporate social responsibility (CSR), and 76% said they would boycott a company that didn’t meet their standards. More consumers than ever before care about the environment and continue to opt for businesses, services, and facilities that are environmentally friendly. 66% of Americans are even willing to pay more for a sustainable product.

Companies like Blackstone have been able to successfully integrate sustainability programs into their business models to attract customers and build growth. More than ever, sustainable practices have become integral to consumers and new employees — workers are finding social responsibility to be one of the most important factors in choosing an employer.

These programs are effective from a business standpoint, as they can help lift enterprise value and even a consumer’s overall opinion of a brand.

1. Risk Management

SRM, or sustainability risk management, is a business strategy that helps align an organization’s profit goals with various environmental policies. SRM aims to help a business increase efficiency to grow and sustain while keeping the environment in mind.

An important aspect of SRM adoption is the importance of complying with local, national, and global regulations. An organization that implements SRM policies focuses on the environmental effects of various business processes and how to prioritize efficiency.

An SRM framework allows management to detect emergent concerns that may affect operations, production, and the supply chain. Potential issues include the availability of renewable resources or changes in government regulations.

SRM plays an important role for many businesses because poor environmental practices can negatively impact a company’s reputation, potentially leading to lost clients or business.

Further, better risk management makes a company more appealing to outside investors. Today, investors are seeking out companies that have a strong sustainability plan. Many see them as the future and a smart way to run a business. An organization without one may soon fall out of favor.

2. Business Growth

Several companies implement corporate sustainability programs for business development, growth opportunities, and better market competition. Some companies may upgrade infrastructure to an existing building, making it more sustainable or cost-effective to create financial benefits and gain energy efficiency.

For example, a company may switch to low-flow water toilets to reduce water waste or invest in high-efficiency HVAC motor retrofits to reduce energy consumption.

This improvement in an organization’s efficiency can ensure consumers still receive an effective environment, and the company can realize cost savings and allocate said savings to help the business expand or grow.

3. Return on Investment

Many sustainability initiatives focus on increasing return on investment (ROI) by reducing resource consumption and resource-related costs. For instance, companies can improve their ROI by prioritizing energy efficiency such as overall water consumption in daily operations. Additionally, numerous companies focus on improving ROI by reducing the total amount of operational waste they generate, such as carbon dioxide emissions.

Creating a Sustainability Plan for Your Business

A sustainability program helps your organization grow, mitigates risk, and improves your brand’s reputation. There are several essential aspects to creating a sustainability program, including sustainability drivers, goals and key performance indicators (KPIs), action plans, and implementation plans.

1. Sustainability Drivers

These drivers are unique to each facility because everyone uses energy and resources differently, meaning each organization needs to determine the sustainability drivers that are most applicable to their needs. Still, multiple companies share similar goals, such as reducing waste and minimizing greenhouse gas (GHG) emissions reduction.

Consider the following sustainability drivers:

Energy consumption
Water conservation
Waste
Building materials
Products
Materials packaging
Supply chain
Community
Employees
Transportation

The factors that may influence sustainability drivers include consumer preferences, employee expectations, investors/owners, resource/supply chain shortages, and brand equity. All should be taken into account when developing a strong sustainability strategy.

2. Goals and Key Performance Indicators

One of the first steps to take when creating a sustainability plan is to assess your baseline. An important base metric is an energy audit, which can help you understand the amount of energy your organization takes in the course of its operations.

An energy audit can also provide recommendations to lower utility bills and expenses and increase overall business efficiency. This audit can also help your business discover different energy opportunities and clean energy alternatives, including renewable energy processes and sources, like wind, solar, hydropower, and geothermal.

3. Action 

After identifying your current energy usage and costs with an energy audit, your company can begin to prioritize action.

Prioritize your initiatives based on feasibility, cost, effort, and impact. Additionally, consider materials, policies, processes, and projects related to energy, products, the supply chain, packaging, and transportation. An actionable program can help your organization minimize waste production, helping your bottom line while improving your impact on the environment.

4. Implementation 

After prioritizing your initiatives, your business can determine how to implement and roll it out on a wide scale. During the implementation process, education and communication are fundamental aspects to achieve critical goals outlined in your program.

Note that it is essential to educate your employees on the importance of implementing a sustainability program and how it may alter existing practices, procedures, or policies. A company must clearly define and educate employees on the brand’s sustainability mission, vision, and values.

Many companies use a green team or sustainability committee to plan and implement a sustainability initiative and measure its success as it rolls out. As your organization rolls out its sustainability plan and implements new practices, it can revisit its base plan and adjust where needed to be the most efficient as possible.

5. Revisit and Revise Your Program Accordingly

Even if your company has successfully created a sustainability plan and has rolled it out, your work is not done. An effective sustainability strategy continues to develop and evolve, adapting alongside the company to meet ever-changing needs and demands.

When your sustainability program is performing well, minor or easy-to-implement changes may further boost your efforts and improve your company’s ROI. As your organization meets its sustainability goals, you can set more mature goals to further your efforts or identify new areas of growth.

Understand Your Sustainability Drivers

Understanding your company’s sustainability drivers can help your business create an effective sustainability program. Some of the most important sustainability drivers to consider include:

1. Energy

One of the most important sustainability drivers is energy. When creating a sustainability plan, it can be beneficial for your organization to assess its energy usage and identify potential opportunities for improvements.

Some ways to increase energy efficiency include:

Work with a partner that offers renewable energy options.
Research applicable clean energy tax incentives or credits that may be available where your business operates.
Opt for energy-efficient equipment, appliances, and tools.
Upgrade your company’s building with low-flow faucet aerators, programmable thermostats, and light-emitting diode (LED) lights.
Consider larger-scale renovations for significant improvements, including solar roofing or heating, ventilation, and air conditioning (HVAC).

2. Water

This is another initiative your company should consider in its sustainability program. Even if your facilities are not located in an area experiencing a drought, you should think about reassessing your water consumption to minimize your brand’s environmental footprint and water-related expenses.

Common water conservation initiatives include:

Correct faulty plumbing, such as dripping taps or leaking pipes.
Consider water-efficient toilets, low-flow faucets, and other energy-efficient equipment.
Minimize landscaping water use and other forms of excess water use.
Promote healthier water consumption habits among employees.
Prioritize drought-tolerant landscaping.

3. Waste

Further, waste reduction is beneficial to the environment and your company’s overall expenses. Though it’d be ideal if all companies created zero waste when making products, an organization should first focus on small improvements to minimize waste, looking to zero waste as a long-term goal.

Common ways a business may reduce waste output include:

Streamline manufacturing processes to minimize waste creation.
Provide resources to clients on repairing products rather than throwing the product away.
Go virtual to minimize paper usage by reducing printed direct mail or flyers.
Store perishable inventory more efficiently to minimize overstocking and spoilage.
Abide by environmental standards in terms of using raw materials and production materials.
Take advantage of all recycling options and minimize waste by reusing or recycling materials.
Instead of disposable marketing, use sustainable promotional items that can be reused and continue marketing your brand.

4. Buildings

There are numerous ways your company’s building can be more eco-friendly, several of them being low-cost. When considering moving or expanding current facilities, it is extremely beneficial to prioritize sustainable architecture. This kind of architecture often utilizes solar panels and recycled materials to minimize energy usage.

A few strategies to improve your building’s energy efficiency include:

Install solar panels or solar roofing.
Replace light bulbs with energy-efficient LEDs.
Improve air quality with live plants.
Implement a smart control system that optimizes building performance.
Install motion sensor faucets and other water conservation solutions.
Use automatic systems and motion detectors to shut off lights when they are not needed.
Prioritize natural light to minimize energy usage.

SitelogIQ Offerings

Our team of experts at SitelogIQ strives to help businesses increase efficiency, minimize waste, and achieve their energy efficiency goals with a sustainability program. We work with clients across multiple markets, including commercial real estate, manufacturing, industrial, health care, shopping centers, warehousing, and distribution.

Some of our most popular sustainability program offerings include:1. Energy Efficiency

SitelogIQ can help your business achieve a higher level of energy efficiency with innovative energy management solutions. We help businesses focus on efficiency and prioritize facility performance as a part of a sustainability plan. Some of our most common energy efficiency solutions include energy savings, energy project planning, energy storage, energy consulting, and energy management.

2. Water

Though water is essential, businesses should aim to reduce their overall water consumption, minimizing water waste and potentially cutting down costs on water-related systems.

At SitelogIQ, our team can review your projects and provide energy efficiency recommendations to minimize water usage. We also look for ways to save your business money, including grant and rebate evaluation and applications.

3. Waste

Minimizing waste is an important goal for almost any business. Our team can provide recommendations on reducing overall waste output, helping your company save money and be more environmentally friendly.

The first step to minimizing waste output is to conduct a waste audit. A waste audit can help your business understand how much waste and what kind of waste it produces each week. With the results of a waste audit, you can determine what waste reduction initiatives or alternatives your business can implement.

4. Buildings/Facilities

Buildings and facilities can be upgraded or retrofitted to be more environmentally friendly and energy-efficient to develop long-term sustainability and realize numerous cost savings. SitelogIQ provides extensive solutions to improve your company’s building or facility, including solar photovoltaics, co-generation, wind turbines, and more.

5. Automation

Automation can help your business achieve energy efficiency and improve the way you measure and verify your energy usage. One example is lighting automation, which can shut off lights in a room if there is no motion detected, improving the functionality and efficiency of your building.

SitelogIQ Energy Services and Facility Solutions

SitelogIQ is a full-service facility planning, design, and management company dedicated to creating healthy, efficient work environments and multi-unit living spaces.

Our team provides deep and wide-ranging knowledge and experience in all aspects of facility planning, design, and management, including mechanical and plumbing systems, central energy plants and energy efficiency, lighting systems, and building controls. We make buildings better so that people in our local communities can thrive in areas where they live, learn, heal, work, and shop.

We are dedicated to delivering comprehensive facility solutions that support the resiliency, future-proofing, energy-saving, operating efficiency, and sustainability goals of our clients. 

Contact SitelogIQ Today to Get Started

Building a sustainability plan can be challenging. With the right approach, we can help make the process go smoothly and adapt your business with the planet in mind. If you’re ready to discuss more, contact us to get started.

Fluctuating market activity is continuing in 2022. From the increasing demand to adopt sustainable processes to Environmental, Social, and Governance (ESG) priorities and data transparency, industrial enterprises must find ways to adapt to changes by acting on opportunities. With a series of shifts already taking place in the market, our experts at SitelogIQ weigh in on the most recent trends and how they will impact industrial enterprises.

Sustainability is top of mind for executives

Sustainability has become a top priority for executives. Rising awareness of the urgency of sustainability has sharpened the focus on ESG programs at the highest levels, notably at consumer products companies. According to a recent Forbes article, “In an Oxford Economics survey, executives from almost three quarters (73%) of CP [consumer products] companies said sustainability issues were a major concern or top-of-mind at all stages of the supply chain process from planning, design, and R&D, through manufacturing, logistics/delivery, and product maintenance – far more than the total from all industries.”

Key Takeaway

The fact that executives hold sustainability as a primary concern and appreciate the need for a holistic approach bodes well for ESG program success. However, it’s essential that ESG initiatives don’t rely on individual efforts; otherwise, moving forward to take action will present challenges.

The difficulty in establishing an effective ESG team is widespread. According to Deloitte, “Despite an increased focus on ESG matters from stakeholders and the need to internally mobilize to create a robust ESG strategy and governance structure, less than a quarter (21% of survey respondents) currently have an ESG council or working group in place to drive strategic attention to ESG topics.”

Action to Take Now

To prevent the issues that can arise from scattered efforts, organizations should implement a centrally-managed ESG program. This will facilitate alignment on goals as well as ensure speedy and consistent rollouts. When shifting to a centralized approach you will need to identify key decision-making team members, define and prioritize sustainability goals, and understand the timeline to achieve those goals.

ESG data availability and transparency are essential

In order to meet stakeholder demands, transparency for sustainability efforts is now crucial. A lack of data transparency regarding sustainability efforts is an avoidable risk that should be mitigated. There are now a variety of available technologies and tools that enable organizations to showcase ESG data and progress. From Forbes: “Operating a sustainable business across vast, complex supply chains demands new levels of data transparency”. Technology has an outsize role in meeting these expectations. Driven by increased demand for environmental accountability in manufacturing ecosystems, IDC analysts predicted that “by 2025, 40% of G2000 manufacturers will use traceability technologies to mitigate risk and boost transparency.”

Key Takeaway

This trend is spot on. We’re seeing more and more investors demanding transparency into sustainability targets, efforts, and progress. Gathering ESG data and making it available to stakeholders is a widespread challenge for companies that own and/or operate industrial facilities.  In order for data to be meaningful, it should refer to established benchmarks, follow industry frameworks, and include the status of current ESG efforts.

A Deloitte survey of 300 finance, accounting, and legal executives across a wide range of industries at US public companies revealed the sweeping need for better ESG data management. A key takeaway of the survey is, “More than half of senior executives (57% of survey respondents) indicated that data availability (access) and data quality (accuracy/completeness) remain their greatest challenges with respect to environmental, social, and governance (ESG) data for disclosure.”

Action to Take Now

For ESG program success, we recommend that data tracking be incorporated into every initiative. Making high-quality data accessible must be a key requirement for every ESG partner and vendor.

Consumer-driven ESG demand is widespread

Climate change concerns and sustainability-first shopping choices are important to consumers in the US and other countries. These priorities have been a big part of driving the change for sustainability consciousness.  From Forbes: “One Forrester survey revealed that about two-thirds of online consumers in Metro China, France, and the UK — and just over half of US online adults — were concerned about the impact of climate change on society.”

Key Takeaway

With consumers demanding sustainability, the need for ESG results is spreading even faster than expected. This demand impacts all industries, not just consumer products.

Action to Take Now

To stay proactive and avoid the risks of being forced into reactive mode, organizations need to increase the effectiveness of sustainability programs and tell a compelling ESG story. Industry leaders like Walmart have been addressing environmental issues for over a decade.

Conclusion

The urgency for sustainability isn’t limited to consumer demand; other stakeholders, including investors, are also scrutinizing companies’ ESG initiatives. Although having executive buy-in is an excellent start, ESG initiatives do not typically succeed when they’re driven by individual efforts. ESG programs require a centrally-managed approach with a dedicated team to make an impact. To minimize risk, data transparency must be built into sustainability programs as part of the framework.

To learn more about leveraging sustainability as a strategic advantage, contact us by email, or, phone at 855.581.6484.

As a result of the COVID-19 pandemic, we’ve seen businesses closing, employees migrating to work from home, and massive supply-chain delays. As is the case with other markets fluctuating in activity since the start of the pandemic, those in commercial real estate have been finding ways to overcome challenges and adapt through opportunities. With the pandemic threatening to turn into an endemic, our commercial real estate experts at SitelogIQ weigh in on the most recent commercial real estate trends likely to play out in the coming year.

Slower industrial rent growth and increased vacancy

In a recent GlobeSt article, The National Association of Realtors (NAR) predicts the demand for industrial space is expected to remain robust as a result of the increase of online shopping, pressures for speedy delivery time, and the need for warehouses and distribution centers. Construction of industrial facilities is occurring with hopes of matching the high demand for facility use.

Globe St.’s Paul Bergeron notes, “NAR foresees that this construction will lead to slower industrial rent growth of 7.4% on an annual basis from the current rate of about 8.4% as of 2021 Q4 (6.7% in 2021).”  He continues, “the vacancy rate is expected to slightly increase to 5% (4.9% in 2021).”

Key Takeaway

However, disruptions and delays to the supply chain aren’t stopping. They’re likely to continue throughout the coming year. Delays on the shipping of raw materials will persist, causing construction projects to take significantly longer to complete. Due to high purchase demand and limited available industrial facility space, a landlord-favored market will see steady rent growth.

What can I do?

Tenants are increasingly needing better facilities and infrastructure to operate. Thus, companies that own industrial space will enjoy a major opportunity to develop and provide improved facilities. What they’ll really enjoy is the increased rent that comes as a result.

High Rental Demand  

The multifamily market has weathered the pandemic better than other markets. One reason for this is high mortgage rates, which motivate people to rent rather than to own.  NAR tells us, “In the multifamily market, higher mortgage rates will boost rental demand as a mortgage payment becomes slightly more expensive. NAR forecasts that the vacancy rate will further tighten to 4.8% in 2022 (5.1% in 2021) and rent growth to average at 10% (7.8% in 2021).” (GlobeSt.)  NAR also notes, “Rental demand is likely to continue to be strong in the West region and New England states where owning is more expensive than renting. Meanwhile, retiring Baby Boomers are likely to fuel demand in the Sunbelt markets, which will boost demand for commercial space (retail and small offices).”

Key Takeaway

With high mortgage rates, the cost of living increasing in many areas, and vacancy rates tightening, we agree that rental demand will continue to remain high.

What can I do?

How does a landlord continue to receive high rents and not lose tenants? One strategy is to offset costs for your renters.  For example, going to sustainable technologies can reduce resident utility costs.. These innovations won’t be lost on your tenants, who will see their value as justifying small increases in rent. In this way, multifamily unit owners can retain higher rents by making those costs sustainable for the renter.

In addition to high rental demand, acquisition activity in the market is  high, and building owners are frequently raising capital. When evaluating deals, investors are increasingly looking towards a company’s ESG (Environmental, Social, and Governance) initiatives and efforts. This means that building owners  will have the opportunity to differentiate themselves and appear more attractive through building upgrades. Current high rental profits allow  multifamily owners  to invest in their ESG initiatives and get ahead of demanding sustainability preferences.

Continued Retail Growth  

From the start of the pandemic, we’ve seen outdoor shopping centers continue to be the preferred retail experience for consumers. ICSC even coined the term “lifestyle centers” as a result of the changing nature in retail, between adapting to e-commerce and the boom outdoor strip malls have been experiencing. “ICSC estimates there are nearly 450 lifestyle centers open across the United States,” according to Propmodo.  This is due to the fact that “these smaller shopping centers are an answer to questions that have plagued mall owners. Instead of boring, cookie-cutter national chain stores selling products spread across homogeneous indoor spaces, local lifestyle centers offer a more tailored mix of services in a more intimate, communal setting.” (Propmodo).

With retail shopping  increasing, NAR predicts continued growth in  retail with declining vacancy rates. “In the retail brick-and-mortar market, growth will continue to be driven by smaller shops such as neighborhood centers, strip centers, and single-tenant stores.” NAR also predicts that vacancy rates will continue to decline. “Given the current low vacancy rate at brick-and-mortar stores and with the rise of experiential retail that will drive foot traffic to the malls, vacancy rates are likely to decline further to 4.6%.”

Key Takeaway

With lifestyle centers performing exceptionally well, we anticipate this performance to continue to dominate as the preferred shopping outlet and for the competition for retailers in lifestyle centers to increase rapidly.

What can I do?

With competition increasing, shopping center owners must continue to adapt to shopper and investor preferences. By investing in property upgrades and amenities that  meet rising shopper preferences, shopping center owners can better compete for shoppers. One example of a property upgrade proven to attract shoppers is EV (electric vehicle) charging.

EV chargers improve overall shopper experience and create an attractive retail environment. According to Mike Battaglia, SVP of Sales and Business Development of Blink Charging, “As EV ownership increases, consumers will be on the lookout for retail facilities that have EV charging infrastructure, where they can seamlessly charge their vehicles while enjoying nearby amenities, like shopping at local businesses and or eating at restaurants.” He adds that this is particularly true in high-density areas.(Globe St.)

Aside from looking to make investments in amenities and other upgrades, property owners need to attract investors.  Investors consider ESG efforts  critical  factors when evaluating investments. “In 2020 alone, 25% of all investor inflows have already gone to ESG funds (up from 1% in 2014)” (March 2021, Article in Foreign Policy). Shopping center owners will have the opportunity to communicate to investors an inspiring story about not only their differentiation in the market, but their ESG initiatives.

Summary

The pandemic has proven to be very transformative. As with many markets, commercial real estate has faced countless challenges, but also significant opportunities for success. Those who are willing and able to position themselves as agile business owners will have an indefinite leg up against the pandemic environment and all the changes that stem from it. Staying ahead of trends, taking necessary preparations for long-term growth, and mitigating legal risk will be essential throughout the coming times of the pandemic.

Contact our SitelogIQ Commercial and Industrial team to learn more about our commercial real estate solutions today. 

Sources

https://www.globest.com/2022/01/04/cres-growth-forecast-for-2022/
https://www.globest.com/2021/12/07/the-case-for-ev-charging-at-shopping-centers/
https://www.propmodo.com/the-pandemic-has-shopping-center-reits-doing-better-than-ever/
https://foreignpolicy.com/2021/03/31/covid-19-made-sustainable-investments-go-viral/

The competitive market for multifamily properties
Drivers and implications of increased market activity
Key concepts to consider in the acquisition processes

The competitive market for multifamily firms

The coming year looks promising; in the CBRE 2021 US Real Estate Outlook¹, multifamily sector investment volume was projected to rise 33% to $148 billion. Multifamily Executive² quotes the CBRE report to explain this multifamily activity: “The economic rebound will lead to rising multifamily demand, largely from ‘unbundling’—certain renters moving out of their parents’ homes or those of friends as job opportunities provide more financial flexibility to live independently.” Multifamily Executive goes on to say, “In addition, COVID-related factors, as well as high housing costs and shifting demographics, have currently impacted the appeal of urban submarkets. Suburban multifamily communities are expected to outpace urban properties in the recovery.” There’s no doubt that multifamily activity continues to rise with major mergers and acquisitions to support this. The founder of Newmark Dallas³ recently said there currently is more buyer demand than there is product for DFW’s multifamily market.

Additional activity:

Owner and operator Morgan Properties partnered with Olayan America to acquire a portfolio of 48 apartment communities with 14,414 units in 11 states for $1.75 billion.⁴
Multifamily leaders Texas-based RPM and Atlanta-based CF Real Estate services are merging to create a national footprint with more than 84,000 units in 17 states.⁵
Utah’s multifamily market hit sales volume levels of $1.63 billion in 2020.⁶
Jordan Fisher, Principal, Next Wave Investors noted his acquisitions in the Phoenix market in Multi-Housing News⁷, “We recently capitalized on high investor demand with the sale of La Estrella Vista, a 96-unit multifamily community in the Far West submarket of Phoenix.”

Drivers and implications of increased market activity

With a surge of increased activity in the multifamily market, there are plenty of theories as to why this is happening including high residential market demand and lifestyle preferences, a continuation of the pre-pandemic market trend, and shifting investor preferences. The National Apartment Association⁸ reported that the U.S. needs about 4.6 million new multifamily units by 2030 to keep up with demand. That’s about 328,000 new units annually over the next 10 years. Driving factors seem to stem from the “renters-by-choice” lifestyle of millennials. With rising costs of homeownership, student debt, and overall lifestyle preferences, renting is seen to be far more attractive to the millennial generation than owning. According to HousingWire⁹, recent surveys show that 32% of rental households don’t believe the American Dream includes homeownership, 26% of people who do own a home wish they were renting instead, and 20% say they never plan on buying a home in their lifetime.

Investors who usually purchase non-multifamily properties are now turning to multifamily due to its resilience in the market. Since 2018, investor preferences have shifted, supporting this notion. According to NEWMARK¹⁰, “The change in allocations [towards Multifamily assets] is being driven by several factors, including a shift toward institutional ownership; stronger risk-adjusted returns in the favored sectors; and growth opportunities in…rental housing….While high levels of NOI growth also are responsible for multifamily returns, employment and population growth in secondary markets—particularly in the Sunbelt—have helped support high total returns.”

With all this multifamily property market activity, it’s important to ensure that assessments and due diligence are as comprehensive and streamlined as possible. A Forbes article¹¹ on multifamily real estate investment says, “The stabilizing economy may offer opportunities for investment growth; however, poorly managed income properties flounder in any economic climate. Consequently, multifamily investors should take precautions to ensure lean operations and tenant appeal to stay competitive and profitable.” The Forbes article offers guidance for acquisition viability, “Exercise thorough due diligence on the market and subject property….Focus on efficiency in energy, labor, and material utilization. Do this by implementing sustainable design strategies in renovations and new builds, and leveraging SaaS technology to streamline asset and property management functions.”

Key concepts to consider in the acquisition process

Include energy efficiency, resident expectations, aesthetics, and construction efficiency early in the process. When deals need to close quickly, the due diligence process must be efficient, but that doesn’t mean energy efficiency should be skipped until later. An energy evaluation will identify opportunities to reduce operating costs, improve resident experiences and aesthetics, and facilitate construction efficiency to help meet the overall financial goals of the investment. Including an energy efficiency evaluation as part of the due diligence process should be common practice for all acquisitions, not just when required for green loans. Pre-acquisition is the ideal time to include an energy audit to maximize your investment. The commercial sector has the Standard Guide for Building Energy Performance and Improvement Evaluation in the Assessment of Property Condition (ASTM E3224-19¹²). A streamlined energy evaluation process should also be used when assessing multifamily properties.
Avoid costly energy efficiency plan delays and prove increased cash flow. Waiting to evaluate energy efficiency can mean running inefficient appliances and lighting, which increases operational costs unnecessarily. A developed energy efficiency plan improves net operating income as quickly as possible. Prioritizing “low-hanging fruit” opportunities such as inefficient appliances, water-saving features, improved HVAC and lighting, etc. can impact operating costs right away. The earlier these opportunities are implemented during the hold period, the more time (and data) you’ll have to prove the increased cashflow and property value increase.
Set realistic budget expectations and be ready to execute rapidly on findings post-acquisition. By evaluating energy efficiency before the acquisition, property managers can develop their post-acquisition plans right away and be ready to execute as early as possible. Preparation will be a strong contributing factor to the success of your due diligence process through combating long lead times, reviewing budgets, and allocating funds as needed to taking action on findings. With strong preparation, being ready to combat common roadblocks leads to seamless, rapid execution.

Experienced energy efficiency auditors in the multifamily space have guidelines to follow and can quickly perform an evaluation at the same time as other auditors, without impacting the due diligence timeline. Working with an experienced energy efficiency partner is a proven, effective method for implementing results-oriented energy efficiency plans. An experienced energy efficiency partner saves time and money that most professionals can’t afford to lose, especially during the acquisition process. In addition to time and cost savings, working with a professional ensures all auditing requirements are met and accounted for. That’s why several of the top 50 NMHC leaders that are acquiring multifamily properties have partnered with the multifamily acquisition experts at SitelogIQ to help overcome obstacles and develop successful national energy efficiency rollouts.

For more information about including energy efficiency in the due diligence process, call us at 855 581 6464, or email CI_Multifamily@sitelogiq.com.

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SOURCES

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¹¹ Rastegar, A.  “What A Recession Could Mean For Multifamily Real Estate Investment In 2020” (March 23, 2020) Accessed at  https://www.forbes.com/sites/forbesrealestatecouncil/2020/03/23/what-a-recession-could-mean-for-multifamily-real-estate-investment-in-2020/?sh=2de69f06c32c

¹² ASTM International. ASTM E3224 – 19 Standard Guide for Building Energy Performance and Improvement Evaluation in the Assessment of Property Condition. Accessed at https://www.astm.org/Standards/E3224.htm