Weekly Transmission

Wellness: A New Paradigm for How We Build (Transmission #326)

Geek Estate Team

08 Jul 2025 • 8 min read

The built environment is undergoing a profound transformation. No longer is real estate simply about shelter or square footage; today, a growing movement recognizes that buildings play a critical role in human health, productivity, and well-being. This shift is embodied in the rise of wellness real estate—a sector that integrates evidence-based health and wellness principles into the design, construction, and operation of buildings.

Wellness real estate refers to the development and management of buildings that intentionally support the physical, mental, and social well-being of their occupants. This approach encompasses a broad range of strategies, from optimizing air and water quality to enhancing natural light, acoustics, thermal comfort, and biophilic design—often guided by frameworks such as the WELL Building Standard and the 9 Foundations of a Healthy Building.

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Key elements include:

Superior ventilation and air filtration
Non-toxic materials and low-emission finishes
Access to daylight and views of nature
Acoustic comfort and noise reduction
Active design to encourage movement
Water quality controls
Thermal health and humidity management
Safety, security, and pest management
Moisture and mold control

The wellness real estate market is expanding rapidly. According to the Global Wellness Institute, the sector was valued at $275 billion in 2020 and is on track to surpass $502 billion in 2025, growing at a compound annual rate of 16%—outpacing the overall construction industry. It’s projected to reach $1.8 trillion by 2032.

For developers and investors, wellness features differentiate projects, increase property value, and respond to the evolving demands of health-conscious buyers and tenants. For industry professionals, this presents a significant opportunity to drive both adoption and innovation—and to lead within this emerging trend.

THE ARRAY OF FACTORS
Several converging factors are fueling this trend:

Health Awareness: The COVID-19 pandemic—alongside rising cases of environmentally-linked illnesses from natural disasters—has heightened public awareness of indoor air quality, ventilation, and how built environments impact overall health.
Productivity and ROI: Companies increasingly recognize that employee well-being directly affects productivity, absenteeism, and retention—costs that far exceed those of energy or rent. As a result, employers are adopting wellness-focused strategies to attract and retain top talent.
Consumer Demand: Homebuyers and tenants increasingly seek spaces that support mental and physical health.
Regulatory and Market Pressures: Green and wellness certifications are becoming differentiators in competitive markets.

“Access to nature and the views created by the planted terraces became an important selling point in the marketplace. Units commanded some of the highest per-square-foot sales numbers in lower Manhattan.” Rick Cook, COOKFOX Architects

ALL IS WELL IN ROI
The business case for wellness real estate is just as compelling as its health benefits—already delivering equally measurable returns in both workplaces and schools.

In office environments, where salaries account for over 90% of operating costs per square foot, even modest improvements in health and performance can dramatically impact the bottom line. Think of it alongside the 3-30-300 Rule: For every $3 spent on utilities, companies spend $30 on rent and $300 on salaries.

In practice, that means design choices matter. Access to views of nature, for example, can reduce employee absenteeism by 11 hours per year—translating to over $2,000 in annual savings. Enhanced daylighting has been shown to boost call center performance by 6–7%, with return on investment in as little as four months. And improved ventilation can increase cognitive function scores and reduce sick leave—often for as low as $1–$40 per person per year annually.

It has also been documented that students in a biophilic school demonstrate almost a 50% reduction in perceived high stress and a 3.3 times increase in test scores when compared with the control group. Boosting morale, lowering stress, enhancing cognitive performance, and reducing sick wellness wins—they’re strategic financial decisions.

"Businesses track key performance indicators every minute of every day throughout the year to understand how their company is performing. Why not health? Tracking Health Performance Indicators, or HPIs, must be part of corporate strategy moving forward. Their buildings are the perfect place to start." Dr. Joseph G. Allen, from Harvard T.H. Chan School of Public Health

RESIDENTIAL WELLNESS
Compared to the commercial sector, wellness in residential real estate remains significantly underdeveloped. Despite the growing interest, most research and certifications focus on commercial buildings. Data linking residential wellness features to health outcomes or ROI is sparse. Long-term, large-scale studies are needed to quantify impact—and to clarify the core definitions that vary wildly across the industry. Without a shared framework, benchmarking and comparison are difficult, and adoption stalls.

There are clear gaps to address:

Wellness features are still rare in mainstream residential construction, often reserved for luxury properties. Expanding affordability is a greenfield opportunity.
Builders and developers lack awareness or tools to implement wellness strategies at scale—or to do so cost-effectively.
Homebuyers may not have access to clear information or certifications that validate wellness claims.

As in any maturing market, these gaps present a powerful differentiation opportunity. That starts with incorporating the 9 Foundations of a Healthy Building into residential design—ventilation, air and water quality, lighting, moisture control, and biophilic elements. Design innovations might include floor plans that blur indoor and outdoor space, mycotoxin-resistant building materials, and advanced systems for filtering light, air, and water.

Emerging technologies can also support this evolution. AI could, in theory, analyze a batch of photos and determine the window density and angles of the sun to grade natural light. Lighting systems are evolving to mimic circadian rhythms and, in fact, Jubilee Homes builds this as part of their standard lighting package. Smart sensors already monitor air and water quality. Sobha Realty, operating in the UAE and Asia, is incorporating pure air and water systems as standard features in wellness-focused residential projects.

Standardizing outcomes from vertically integrated wellness applications in residential real estate remains challenging. The industry urgently needs a strong, independent organization to develop and enforce standards specific to wellness in residential settings—this is no longer optional, but essential. A trusted, unbiased source of objective truth. I can’t stress this enough.

CONTEMPLATIVE REFLECTION
To imagine that our biology can remain untouched by the air we breathe, the light that surrounds us, or the presence—or absence—of nature is to ignore a fundamental truth of the human experience. We are, in every sense, shaped by our surroundings.

Science may still be evolving, but the message is already resonant: Everything is connected. Restorative sleep, clear-headed productivity, and the subtle ease that comes from natural light and clean air are not luxuries—they are the foundations of a thriving life. Our health, our perceived happiness, and even our economic prosperity are intertwined with the quality of the spaces we call home, work, and community.

The industry already ranks sound, walkability, climate, and nature. Why not wellness?

Imagine a world where the value of a building is measured not just in dollars per square foot, but in days of vitality gained, in moments of stress eased, in the simple joy of feeling well. Wouldn’t that be a future worth building?

Wellness real estate invites us to reimagine what is possible—not just for the market, but for humanity itself. This is more than a business opportunity; it is a movement toward spaces that honor our connection to each other and the planet. As we stand at the threshold of this new era, the question is not whether we can afford to invest in wellness, but whether we can afford not to.

Image generator: DALL-E
Prompt: show image of wellness in construction of real estate, that shows an ecosystem that includes:Superior ventilation and air filtrationNon-toxic materials and low-emission finishesAccess to daylight and views of natureAcoustic comfort and noise reductionActive design to encourage movementWater quality controlsThermal health and humidity managementSafety, security, and pest managementMoisture and mold control single family home not a building

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