Real Estate & Active Transportation: Our View from the Urban Land Institute Conference

May 16, 2023

I’m at the Urban Land Institute (ULI) Spring Meeting with Laura Walsh to learn from and network with experts in land use transformation, real estate, and sustainable development – while experiencing the innovative and rapidly growing city of Toronto. 

We are here leading the North American expansion of ActiveScore – which assesses, designs, and certifies best-in-class facilities that support and encourage the adoption of active travel.

What I appreciate about ULI is that it’s a real estate-focused organization, but it also draws professionals from the fringes of the industry – like us – who work at the intersection of sustainable mobility and real estate. It is often said that innovation happens at the intersection of industries. And I believe that we can – and must – do more to decarbonize transportation and real estate simultaneously, instead of tackling them separately. 

According to the EPA, 29% of carbon emissions come from transportation, and more than 60% of those emissions are from personal transportation. As I witnessed firsthand at the NACTO (North American City Transportation Officials) conference in Boston last September, city and local governments have been increasingly embracing the role they play in moving the market and consumer behavior toward more active and sustainable transportation. City transportation leaders have a myriad of carrots (think e-bike tax rebates and separated cycling infrastructure) and sticks (think congestion pricing, or pedestrianizing downtown areas), to move the needle towards decarbonizing urban transportation. 

The real estate sector, however, could be doing more to address their greenhouse gas emissions. According to a report released last month by BisNow, the leading publication serving the commercial real estate industry, the majority of the world’s largest REITs and institutional investors do not even track the emissions created by their tenants nor the carbon created during the development of the buildings they own. 

These indirect emissions are known as “Scope 3” and are a critical part of decarbonizing the real estate sector, especially as we are trying to get closer to a future with buildings that have net-zero emissions. One of the most overlooked categories of Scope 3 emissions is transportation -- how people get to and from buildings. Micromobilty innovation, municipal planning efforts, and a growing interest in wellness have led to a dramatic increase in active travel, making it essential for developers to invest in attractive end of trip facilities. 

As a for-profit, private sector industry, real estate companies are capable of innovating at a quicker pace than the public sector. Now is the time – we must work together to shift toward active – and sustainable – modes for tenants and employees.

Throughout the US and Canada – outside of the few cities with well-connected transit systems – the primary way to get to and from work is still a single-occupancy vehicle (SOV). According to the EPA, if just 5% of the 106.4 million American workers who currently commute by SOVs shifted to another mode, they could save nearly 21 million tons of CO2 per year. Changing commute habits is challenging, but promoting and incentivizing active transportation is a relatively easy way to reduce Scope 3 emissions - and requires minimal investment in comparison to other carbon emission reduction strategies. It helps with tenant attraction and retention, and has a positive impact on the health and wellbeing of occupiers of buildings. 

Some ways to make changes is to reduce the existing car parking spaces within a building, and build a separated active travel facility, that supports the ease and comfort of people traveling to and from a building with active modes. Finally, archaic parking minimums in many cities are finally being removed and bicycle parking requirements and active travel facility standards are being elevated. The momentum is building, so let’s chat about making active transportation a priority for your building or portfolio, and receive recognition for the investment you make.