Wildfires Renew Landlord Focus on Office Air Quality

Wildfires put air quality in focus as CRE landlords improve ventilation, monitoring, and tenant messaging to meet growing workplace demands.
Wildfires put air quality in focus as CRE landlords improve ventilation, monitoring, and tenant messaging to meet growing workplace demands.
  • Wildfires triggered unhealthy air quality across the US, making indoor air management a top priority for office landlords.
  • Owners like Durst and JLL are investing in sensors and proactive messaging to address tenant concerns about ventilation and filtration.
  • Science links indoor air improvements to higher worker productivity, giving air quality upgrades clear business value in competitive markets.
Key Takeaways

Air Quality Pushed to the Forefront

Wildfire smoke from Canada brought unhealthy air to major US cities, including New York, in July. According to Bisnow, the event pushed indoor air quality from a background concern to an urgent priority. For landlords, it created more than an operational challenge. It tested their ability to protect tenants and communicate that value.

As wildfires grow more frequent and intense, commercial property owners are re-evaluating air quality systems. They increasingly view these systems as essential for health and overall building performance. EPA data shows the scale of the problem. In July, 21 of the 25 hardest-hit metros recorded unhealthy pollution levels for sensitive groups across six consecutive days.

Research also connects indoor air quality with cognitive performance. Therefore, landlords who overlook air quality could risk tenant retention and financial performance.

Healthier Workplaces as Differentiators

Extreme wildfire events aren’t new, but their recurring effects continue to shift expectations for building owners. The pandemic accelerated investments in ventilation and filtration systems. Wildfires and resulting air pollution have sustained that pressure. Harvard Healthy Buildings Program expert Joe Allen emphasizes that better air can improve both health and business performance.

Allen’s Global CogFx study found measurable cognitive gains in offices with improved air quality. The research covered several countries, including the US, UK, and China. Tenants also notice these differences. In a Pollfish survey commissioned by GPS Air, 61% of workers prioritized fresh air over amenities like gyms.

Meanwhile, two-thirds said improved airflow increased their confidence in workplace safety. Dust or odors affected 83% of workers’ confidence in management. Those figures matter as office buildings compete for tenants and occupancy.

The Details

Leading owners now combine monitoring and communication with equipment upgrades. Durst Organization owns 16M SF of office space across New York. It installed building-wide sensors that track seven air quality metrics, including carbon dioxide and particulate matter.

When wildfire smoke darkened New York’s skies, Durst communicated its system capabilities directly to tenants. Meanwhile, Manhattan landlords are navigating broader property changes as new zoning rules unlock more opportunities for air rights transactions. JLL also integrates air quality monitoring into daily operations across 275M SF managed for global technology clients.

JLL compares indoor air metrics against real-time outdoor conditions. Facilities teams continuously monitor conditions and adjust HVAC settings or filters when necessary. This approach helps portfolios respond quickly to wildfires, industrial accidents, and other air quality events.

Tenant Demand and Messaging Lag

Rising air quality concerns highlight a gap between what landlords provide and what tenants understand. Wendy Feldman Block of Savills says many landlords operate advanced ventilation systems but fail to promote them. As a result, they can miss an important leasing differentiator.

Feldman Block uses a custom air quality survey when helping clients evaluate RFPs. That practice reflects how tenant priorities have changed. JLL’s Justin Kenyon says enhanced air protocols often add minimal costs. That strengthens the business case for wider adoption.

However, the industry remains divided. Leading landlords and occupiers, including Google and JPMorgan Chase, integrate healthy air strategies into operations. Others continue delaying investments or giving air quality less attention.

Why It Matters

Air quality continues moving higher on the priority list for commercial landlords and tenants. Acute wildfire events are accelerating that shift. Research connecting indoor conditions with employee performance adds another incentive.

Harvard’s Joe Allen has estimated that better air quality could improve business performance by up to 10%. His estimate reflects measurable gains in worker cognitive performance documented by research, including the 2021 Global CogFx report. For landlords, the financial benefits could include stronger occupancy, lower turnover, and better differentiation.

Meanwhile, implementation costs continue falling. JLL’s management model shows that enhanced filter changes and ventilation can represent relatively minor operational expenses. Tenants increasingly expect real-time transparency and quick mitigation during unpredictable wildfire events.

What’s Next

Wildfires will likely remain a recurring threat, increasing tenant scrutiny of building air management strategies. Landlords should expect broader adoption of building-wide monitoring networks and proactive tenant communication. These practices could become standard across premium properties and older portfolios alike.

Regulatory and ESG standards could also increase pressure for transparent air quality reporting. As expectations evolve, measurable air quality data may influence occupier decisions more than generic amenity upgrades.

Leading owners are already training leasing teams and updating RFP responses to highlight air system capabilities. These practices could establish a new operating baseline across competitive urban office markets.

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