The Priorities of a Tenant vs. a Landlord

The idea of “wellness” took on a new meaning and higher priority for most of us last year as the global pandemic continued to spread. From staying safe from COVID-19, surviving the discomfort of the non-ergonomic kitchen table or couch, and trying to keep our mental health in check from the complete shutdown of social interactions, we have all been looking for ways to be well at home. Now that many are going back to the office, the focus will include staying well in the workplace. Wellness in the workplace is no longer an option but a foregone conclusion for most organizations, including property owners and developers.

Interviewees:

Axel Santiago, Director of Sustainability and Wellbeing Strategy at Pfizer

Jordan Barowitz, Vice President of Public Affairs for Durst

The Occupier Perspective: Pfizer

If it wasn’t already, Pfizer has become a household name after launching the first COVID-19 vaccine. It also made the news in the real estate world in 2016 with the announcement that it would be selling the building it had owned and called home since 1961 and moving to Hudson Yards in late 2022. With the move, Pfizer looks to “provide a new workplace that promotes the health and wellbeing of our colleagues, a workplace where colleagues feel energized, productive, and inspired to do their best work,” says Axel Santiago, Director of Sustainability and Wellbeing Strategy.

Of course, Pfizer’s wellness initiatives go beyond their New York City headquarters to positively impact all 90,000 employees around the globe. Santiago says that each of their global locations “offers a unique set of opportunities, and our approach is to create and provide a playbook of wellbeing and sustainability design strategies that can be leveraged across our portfolio, based on each location profile.” Centered around the major key areas of Indoor Air Quality, Activity-Based and Biophilic Design, Lighting, Water, and Cleaning and Infection Control, the design of each location then expands from these core principles. Its HR and wellness programs, which encompass physical and mental health management, nourishment, occupational case management, and flexible work, are also implemented across the locations, customized to the needs of the local teams.

For the NYC headquarters, Santiago explains, “our guiding principle right from the start was to implement strategies that move the dial in providing a safe and healthy environment.” During the initial evaluation of potential strategies, Pfizer engaged different internal and external stakeholders from diverse fields, including environmental, health and safety, colleague wellness, facility operations, architects, engineering, project management, HR, legal, communications, and industry experts. Santiago continues “The groundwork done by the design firm was instrumental in identifying and implementing some of the key wellness strategies for our new space.” The team also collaborated with a prominent healthy building expert from the Harvard School of Public Health so that the assessment would “be based on and backed by years of scientific research on the effects of healthy building on cognitive function and physical and mental health.”

Some of the stand-out features of Pfizer’s new headquarters include:

  • A Dedicated Outdoor Air System (DOAS) provides
    independent ventilation and humidity control, thermal comfort and high-quality indoor air with 30% increased ventilation from the ASHRAE standard.
  • Active Design principles, such as interconnecting staircases adjacent to each floor’s amenities to promote movement, access to outdoor terraces on every floor, access to a fitness center and renewal spaces, and flexible work spaces with a variety of focus, collaboration, and social settings and seating arrangements for a vibrant workplace.
  • Floor-to-ceiling windows across every floor transport daylighting and views to every associate, and biophilic design offers a visual connection with nature through the use of natural materials and biomorphic forms.
  • Enhanced cleaning protocols include high touch surfaces, cleaning products, cleaning logs, and training, as well as a clean desk policy.

Once Pfizer had decided on the main strategies for the wellbeing of its colleagues and the environment, the Company began to pursue the appropriate certifications. Third-party validation was important, and a multi-pronged approach was taken with LEED v4 Gold and Energy Star certifications for environmental sustainability strategies and the WELL Building Standard v2 Gold for health and wellness strategies. Santiago expounds, “Although we considered other wellness certifications, we felt that WELL provided a couple of key features. First, it is a widely recognized standard that includes a comprehensive and robust set of requirements comprising the full scope of health and wellness areas. Second, the ongoing recertification requirements will validate our commitment to maintaining the highest health and wellness strategies for our colleagues and visitors.” Another benefit Pfizer found from the WELL standard is that it incorporated thorough provisions that have a direct impact on infection control design and practices, such as indoor air quality controls, cleaning protocols, and touchless fixtures. Because they had to adhere to such high standards for infection control already, the company did not have to start from scratch when COVID-19 reared its ugly head.

Even though the Wellness at Work movement had started to take off before COVID-19, many companies still saw it as an expensive undertaking that wasn’t worth prioritizing before the pandemic. However, Pfizer has found that its beneficial core wellness strategies have not materially impacted the overall project investment and furthermore, and the company believes that the investment in colleague wellbeing, increasing productivity, job satisfaction, and talent attraction and retention, are powerful contributors to their purpose of breakthroughs that changes patient’s lives.

How will Pfizer know if these initiatives are effective? Although Santiago acknowledges that “the full value and expected outcomes of these health and wellness initiatives, such as promoting cognitive function, productivity, energy, and overall well-being, can be more qualitative than quantitative in nature,” the company tracks number of clinic visits and medical leave, reduction in insurance cost, participation in wellness programs, talent retention and other safety metrics.

The Landlord Perspective: The Durst Organization 

Landlords are getting in the wellness game too. Just as Pfizer recognizes the ROI on attracting and retaining talent, landlords are predicting that they will have the same outcome if they reposition their portfolio for a healthier future. Companies are beginning to demand that the buildings they choose to occupy contribute to their overall goals. A landlord that is rising to meet these demands is The Durst Organization, a developer, builder, owner, and manager of office and residential buildings. Jordan Barowitz, Vice President of Public Affairs for Durst says that the organization takes a human-centered approach to sustainability. Like many, its sustainability story and focus have evolved over time. Years ago, the concentration was more on energy. Now Barowitz says that the leadership realizes that “buildings are only as efficient as the people inside.” The workforce, which is the costliest element in the building, is also the most important.

What does a commitment to people look like? Investing in HVAC and glazing; giving tenants the freshest, cleanest air by increasing the rate of refreshment and filtration; investing in human-centered design where interior walls don’t bisect the glass, giving views to all; investing in amenities that emphasize physical and mental wellness.

At Durst’s nearly 2,500 residential units, residents enjoy amenities that promote physical fitness such as pools, basketball courts, gyms and rooms for yoga, Pilates and meditation. Shared spaces such as grills and cooking stations outside and indoor kitchens inside. Beyond the physical space, the organization also offers events such as cooking classes held in its communal kitchens and mud parties for children in outdoor areas. Yes, you read that correctly – mud parties. “Kids in NYC don’t always have the readily available opportunity to dig in and play in the mud like their suburban or rural counterparts”, says Barowitz. Hmmm, maybe this could be cathartic for adults too.

Durst’s commercial tenants are not left out of the fun and educational events, but in the office buildings topics center around more work-related issues like time management and stress release. “The aim is to get people away from their desks and let them work in a slightly different environment,” Barowitz says. At 151 West 42nd Street, the Frank Gehry Cafeteria has been converted into an artisanal food hall that has a partnership with McEnroe Organic Farm and is curated by Master Chef Charlie Palmer. Other amenities, like a green wall at 151 W 42nd Street, impart nature into the space.

Many of Barowitz’s favorite wellness features are the ones that you might not notice – the ones that make you feel good in a space. For example, Durst’s Aircuity system solves the problem of getting tired after lunch by bringing in more air as CO2 levels rise. The organization has also set strict standards for the health and sustainability of materials utilized in its developments, engaging with its design and construction partners to vet each product.

As NYC’s office spaces emerge from their hibernation, wellness will be front and center, bringing peace of mind to workers as they readjust to the positives and negatives of commutes, public transit, meals at desks or on the go, and collaborating and socializing with their colleagues again.