Why Indoor Air Quality Is an Asset Value Multiplier
- David Mallinson
- 3 days ago
- 2 min read
For decades, commercial real estate value has been driven by location, design, energy performance, and tenant amenities. Today, another factor is moving rapidly up the value hierarchy: Indoor Air Quality (IAQ).
IAQ is no longer a “soft” feature. It is a hard driver of asset value, influencing leasing velocity, tenant retention, operational risk, and long-term resilience.
Indoor Air Quality and Building Valuation
Buildings with demonstrably high IAQ increasingly command:
Higher occupancy rates
Longer lease terms
Lower tenant churn
Reduced operational risk premiums
Investors and occupiers alike are recognising that poor indoor air quality exposes assets to hidden liabilities: productivity loss, higher absenteeism, reputational risk, and future compliance costs as standards tighten.
Conversely, buildings that proactively address IAQ signal:
Better asset management
Lower future CapEx risk
Alignment with ESG and wellbeing standards
Stronger long-term cash flow stability
In valuation terms, IAQ improves Net Operating Income (NOI) not by increasing rents alone, but by protecting income certainty.
Leasing and Occupancy Performance
Post-pandemic, tenants are far more discerning. Questions around air quality, filtration, ventilation, and purification are now routine in leasing discussions—particularly in offices, healthcare, hospitality, and education.
Buildings that can demonstrate:
Continuous air purification
Measured IAQ performance
Alignment with ASHRAE, WELL, or LEED
have a clear advantage over comparable assets that cannot.
IAQ has become part of the leasing narrative — and increasingly, part of the lease itself.
IAQ as Risk Reduction
From an investor perspective, IAQ reduces:
Health-related disruption
Regulatory exposure
Retrofit urgency later in the asset lifecycle
That risk reduction translates directly into asset value.
Healthy buildings are resilient buildings. And resilient buildings outperform.
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