How Sustainable Design Reduces Operating Costs, Drives ROI, Published in Multi-Housing News

In an article published on 6/5 in Multi-Housing News, HELD Architecture President Kristina Held, AIA and Future of Neighborhood Development (FuND) Principal Trent Michels discuss the value of sustainable design for creating vibrant, resilient, and inclusive communities that enhance resident quality of life while minimizing environmental impact. The multifaceted benefits of sustainable design – from placemaking and walkable neighborhoods to the positive impact on residents’ and visitors’ mental health – can be balanced with a real estate developer's perspective on capital expenditures, operating costs, occupancy and retention goals, return on investment metrics, and exit value.

“Sustainable design in multifamily housing is not simply an ethical imperative—it is a sound business strategy that helps these assets stand out in a competitive market,” write Held and Michels. “By integrating sustainable principles into design, construction, and operations, multifamily developments can create enduring places that support long-term demand and position the asset as a neighborhood anchor, elevating its strategic importance in the local housing ecosystem while meeting the evolving needs of residents, cities, and investors alike.”

Mixed-use developments such as The Cannery in Salem, Oregon, conserve natural resources while creating more sustainable communities. Building to Passive House standards and including on-site renewable energy sources such as solar panels and geothermal systems further enhance sustainability, effectively transforming multifamily developments into self-sufficient communities powered by their microgrids. Held and Michels note that green buildings outperform the market in absorption, leasing velocity, and retention metrics—and that as ESG mandates become more prevalent among institutional buyers, green-certified assets are commanding higher valuations and tighter cap rates.

“Sustainability is no longer a marketing add-on; it is a risk mitigator and value enhancer,” write Held and Michels. “From an investment standpoint, these projects are positioned to outperform over a 10-year hold with stronger IRR and equity multiples.” 

Read the story in full, click here.