Real estate’s retrofitting era
The problem: Tech moves fast, but that isn’t always the case for real estate. What was once a novel idea, can quickly turn into an outdated solution.
That’s what happened with New York’s One Vanderbilt, which back in 2016 had an award-winning, green design. It was built to be climate friendly but now many of those features aren’t enough to keep up with the regulations and rules today, the New York Times reports.
Like what you’re reading? Subscribe to Fifth Wall’s newsletter here.
For example, the building generates much of its own electricity, but the turbines used to do so burn natural gas (this is cleaner than coal or oil, but still not the best). While One Vanderbilt was going up, New York adopted rigorous climate laws that include a ban on fossil fuels in new buildings.
Moving forward: Most buildings, old and new, are bad for the environment. This is true everywhere. And more local legislation focused on decarbonization (like Local Law 97) is coming. So what can the industry do? One answer for right now: Retrofitting. This can look like improving insulation, upgrading heating and cooling systems, and installing energy efficient lighting are practical and cost-effective.
As retrofitting accelerates, there will be significant new demand for energy efficient materials and systems, according to McKinsey’s research. The need for tracking and performance management services will jump too.
To sum it up, the pace of change in climate tech coupled with precedent-setting climate legislation is likely to be a catalyst for retrofitting.
Bottom line: “The most sustainable building is one you’ve already built. Retrofit it,” according to Brendan Wallace, co-founder and managing partner of Fifth Wall.
