In an enlightening conversation with Kira Golenko, the founder and CEO of Motko, I, Lewis Davis, had the opportunity to delve into the fascinating topic of healthy building certifications and their impact on both occupant wellbeing and financial performance. Kira shared her extensive experience and insights into how obtaining certifications like WELL, LEED, and BREEAM can transform properties and provide significant returns on investment.
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A Journey from Finance to Wellness
Kira’s background is as diverse as it is impressive. Originally from Latvia, she began her career in finance, working with firms like Neuberger Berman and Actis. Her journey took a pivotal turn when she founded Motko, a company dedicated to enhancing health and wellness in office and residential spaces. Her passion for real estate’s potential to improve people’s health became evident as she recounted her experiences during the pandemic.
“One of the biggest concerns during the pandemic was air quality,” Kira explained. “Productivity and wellbeing are heavily impacted by the quality and ventilation of air in a room. Unlike water, you can’t see if the air is clean or dirty. This highlighted the incredible opportunity for landlords and property owners to create healthier spaces.”
The Certification Process
Motko offers a comprehensive approach to obtaining healthy building certifications, acting as an extension of a client’s investment or sustainability team. “We perform a very in-depth analysis, budgeting, and vendor selection,” Kira detailed. “We’re really a part of your team.”
Among the certifications available, WELL, LEED, and BREEAM stand out. Each program has its own criteria and benefits, but Kira expressed a particular fondness for WELL due to its evidence-based framework and focus on occupant health and wellbeing. “What is great about WELL is that over the years, the program has had many successful case studies showing not only how it benefits occupants’ wellbeing but also how it drives financial performance for landlords and operators,” she said.
Financial Benefits and ROI
When it comes to the return on investment, Kira provided compelling data. “On average, you can expect up to 7.7% higher net rent and up to 30% capital value appreciation at the exit,” she noted. “Health attributed buildings have 88.3 months average vault compared to 75.3 months for non-healthy buildings. So, there’s significant upside for landlords and property managers.”
Kira also highlighted the importance of customising solutions based on the unique characteristics of each property. “We perform CapEx analysis early on, understanding the competitive landscape and what’s being offered in the market. For one client, we managed to decrease the certification budget by 30% by proposing a high-end gym operator as a tenant and reallocating space more efficiently.”
Navigating Multiple Certifications
One of the most significant advancements in the field is the ability to obtain multiple certifications simultaneously. “Now, you can obtain WELL, LEED, and BREEAM certifications during the same process,” Kira explained. This streamlines the certification journey, making it more accessible and efficient for property owners.
The Human Impact
Beyond financial metrics, the human impact of healthy buildings is profound. “Community-based physical activity initiatives can decrease depression symptoms by 20% to 30%, and improved air quality can increase cognitive function by 61% to 101%,” Kira shared. “Occupants in WELL-certified buildings report 10% higher mental health, 2% improved physical health, and a 30% improved overall satisfaction with the workplace.”
Overcoming Market Challenges
In today’s market, with its shifting dynamics and regulatory pressures, Kira stressed the importance of health and wellness as a differentiator. “Health and wellness is the only lever landlords have. Otherwise, many properties risk becoming obsolete. Initiatives like improved air ventilation and creating supportive spaces for young mothers can significantly enhance a property’s appeal without requiring massive CapEx investments.”
A Vision for the Future
Kira’s vision for Motko is clear: to help landlords create healthier, happier spaces while improving financial performance. “We can help property owners analyse existing assets or identify potential acquisition targets. We also consult on sustainability-linked financing, helping clients fund initiatives around repositioning buildings or new strategies like social housing.”
As our conversation drew to a close, it was evident that Kira’s passion for integrating health and wellness into real estate is driving tangible benefits for both occupants and property owners. Her insights underscore the transformative potential of healthy building certifications in today’s evolving market landscape.
Lewis Davis
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