When we think of return on investment (ROI), we may imagine spreadsheets and financial reports. But what if ROI could also be found in the vibrant green of potted ferns, the cascading vines of a green wall, or the serenity of an indoor garden? Increasingly, businesses and property managers are discovering that plants do more than just beautify spaces—they also deliver measurable benefits in tenant retention and wellness.
Plants as a Tenant Retention Strategy
For property managers, tenant retention is key to maintaining a steady income and reducing turnover costs. Here’s how incorporating plants into a space can help:
- Create a Healthy, Welcoming Environment
Lush, green spaces evoke feelings of home and comfort. Whether it’s a shared lobby, rooftop garden, or a communal courtyard, biophilic design creates an inviting atmosphere that encourages tenants to stay longer. Moreover, plants act as natural air purifiers, which is all the more reason to bring the outdoors in when indoor air is as much as 30 times more toxic than outside air. By absorbing pollutants, releasing oxygen, and increasing humidity levels, greenery results in cleaner air and better health.
- Differentiate Your Property
In a competitive real estate market, unique amenities make all the difference. A thoughtfully designed green space, like a living green wall or an indoor garden, signals to tenants that your space is designed to better their well-being. The mere presence of plants has been shown to reduce stress and anxiety. Greenery creates a calming environment, which can be valuable for improving how tenants feel when they enter your property. In fact, research shows that exposure to natural elements can reduce stress levels by more than 15%.
- Build Community
Shared green spaces naturally encourage interaction. Whether it’s a tenant barbecue on the rooftop or a relaxing corner in the lobby, plant-filled spaces like these can help foster community on your property. Humans have a biological inclination toward natural elements, so we are more likely to spend time in spaces incorporating biophilic design. Merely being exposed to plants has been linked with improved cortisol levels and fewer symptoms of depression and anxiety. If given enough time and attention, greenery will breed community, which increases tenant satisfaction and loyalty.
Quantifying the ROI of Green Spaces
While the benefits of plants might seem intangible, their benefits can actually be measured in ways that matter to property managers and owners.
- Reduced turnover costs. Happy tenants are less likely to move out. Lower turnover means savings on marketing, broker fees, renovations, and vacancy periods.
- Higher occupancy rates. Properties with amenities like greenspaces often attract more interest, allowing for quicker leasing and the potential to increase rental rates.
- Increased property value. Greenspaces and biophilic design are becoming increasingly sought after, boosting the market value of properties that incorporate them. Learn more about biophilic design and ESG goals in this blog.
Plants may not be the first thing that comes to mind when evaluating property performance, but their impact on tenant retention and wellness is undeniable. By building greener spaces, new opportunities for ROI emerge. In today’s world, where wellness and sustainability are growing priorities, investing in plants isn’t just a trend—it’s a smart business decision that pays dividends for both people and finances.
