Nareit’s CRE Sustainability Priorities 2026 webinar on Jan.27 explored the main themes of REIT sustainability programs for the coming year. Nareit’s Jessica Long, senior vice president for environmental stewardship & sustainability, moderated the discussion with Chris Laz, vice president, sustainability, at Realty Income Corp. (NYSE: O) and chair of Nareit’s Real Estate Sustainability Council (RESC), and Lauren Moss, chief sustainability officer at Vornado Realty Trust (NYSE: VNO) and RESC vice chair.
A key thread of the conversation was that sustainability has come full circle back to being a core business strategy. Rather than operating as a standalone function, sustainability is increasingly tied to risk management, capital access, tenant demand, and long-term value creation.
Panelists highlighted how sustainability supports investment resilience—through climate risk assessments, regulatory compliance, operational efficiency, and decarbonization—while also strengthening relationships with investors and tenants.
Laz pointed out that for global net lease portfolios, sustainability efforts focus on reducing investment risk, accessing capital markets, and engaging tenants despite limited operational control. For owner-operators such as Vornado, priorities center on controlling operating costs, protecting NOI, and aligning financing tools like green bonds and sustainability-linked loans with realistic performance targets, Moss noted.
Tenant engagement emerged as a critical area of focus. Increasingly, tenants are driving sustainability through due-diligence requirements, emissions targets, and demand for transparency around energy, health, and building performance. The discussion also emphasized that sustainability decisions must reflect real-world constraints, including grid capacity, energy costs, insurance availability, and lease structures.
Looking ahead, REITs are well positioned to make impact through building efficiency upgrades, energy procurement strategies, health-focused building operations, climate resilience, and community engagement. The importance of collaboration—across internal teams, with tenants, investors, and peers—to navigate complexity and share best practices, was also highlighted.
Meanwhile, Moss added that she is excited for the REIT sustainability community to convene at Nareit’s REITwise 2026 Educational Conference, where the RESC will meet in person and sessions will cover a range of issues related to REIT sustainability trends in 2026. Registration is currently open for REITwise, which is taking place in Hollywood, Florida on March 24-26. This event is for REIT professionals and the companies that serve them.