Prioritizing people and the planet, when it comes to building construction and real estate development, is being seen as more than an ethical mandate - it is a highly profitable approach. Changing market demands, city ordinances, and regulations, and an emphasis on Environmental, Social, and Governance (ESG) factors are all influencing what successful development in the 21st century stands for.
In Toronto, Canada, the ongoing Downsview Airport redevelopment project showcases this mindset in practice. While traditional development has generally focused on maximizing short-term returns, the Downsview project offers a holistic alternative that can invite significant long-term profits, all while addressing broader societal and environmental concerns.
The integration of Environmental, Social, and Governance (ESG) principles is gaining prominence in real estate, shaping industry strategies and investor preferences. The Triple Bottom Line approach, focusing on people, the planet, and profit, provides a comprehensive framework for sustainable development. This article examines how projects like the Downsview Airport redevelopment exemplify this model, balancing environmental stewardship, social equity, and economic growth while addressing modern urban challenges and community needs.
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Environmental, Social, and Governance (ESG) is the new buzzword across industries and has gained central importance in construction and real estate development. A 2021 report by PwC and the Urban Land Institute states that ESG factors are strong determinants of real estate strategies, driven by rising investor demand.
Tenants, whether residential or commercial, also seek properties that align with their values and will often pay a premium to obtain sustainable and socially responsible properties. Regulatory pressures add to the need, with stricter environmental and social regulations making ESG compliance a necessity.
The people, planet, and profit framework, also called the Triple Bottom Line, is a business model that measures the social, environmental, and financial impacts of a project. In the real estate sector, it sheds light on the need to consider the community's welfare and the environmental obligations of a business. This approach offers a pathway to financial success while ensuring that profitability does not come at the expense of social disadvantages.
Downsview Airport: A Model for Ethics-led Development
The Downsview Airport redevelopment project is a modern-day example of how the ESG and Triple Bottom Line approaches can be applied in real estate development. On the environmental side, the project dedicates a quarter of the site to parkland and integrates green infrastructure throughout. This strategy assures recreational spaces while solving for stormwater management and biodiversity preservation. An emphasis on walkability, cycling infrastructure, and public transit strives to reduce car dependency and associated carbon emissions.
From a social perspective, Downsview meets community needs by designating 10% of units as affordable and 40% designed for families. Their commitment to the "15-minute city" concept facilitates community cohesion and accessibility. Residents are ensured access to recreational and social amenities with community facilities, parks, and open spaces.
The project also acknowledges the merits of cultural integration, with plans to incorporate public art and spaces that reflect the area's diverse community and Indigenous heritage. Economically, the redevelopment hopes to create over 41,500 new jobs across different industries to support local economic growth and provide long-term value for investors.
Other decommissioned airports have given major metros new opportunities for city-making. Sakaki's redesign of Santa Monica's municipal airport suggests transforming the site into an expansive public space, offering an opportunity for urban rejuvenation. However, the plan has sparked debate among local stakeholders. Critics argue that the city is overlooking a rare chance to solve its affordable housing shortage in one of Los Angeles County's most desirable areas. While designing for the triple bottom line, cities face complex challenges in balancing ethical demands with financial resources.
Creating Self-Reinforcing Ecosystems
Adapting to the present-day demands of environmentally-conscious initiatives, developers have utilized large-scale, mixed-use developments as opportunities to promote social well-being to tenants. Covering 370 acres, the Downsview redevelopment allows for economies of scale in both construction and infrastructure development. Its long-term nature, backed by a pension fund, boosts value appreciation over time as the area evolves into a desirable mixed-use community.
Another avenue for profitability is through its transit-oriented development, meeting heightened demands for accessibility and reducing car dependency. The Downsview project benefits from three existing subway stations, allowing it to command premium property values and embody trends around walkable neighborhoods.
The project builds a self-reinforcing ecosystem that generates multiple revenue streams by integrating residential, commercial, and recreational spaces. The plan includes 1.1 million square meters of employment space alongside residential and recreational areas, activating a 24/7 community that serves both residents and businesses. Focusing on spaces for innovative industries can attract high-value tenants and create a "clustering effect." The plans for Downsview also include repurposing heritage buildings to nurture local talent and stimulate innovation, potentially leading to higher rental rates and property values over time.
Similar to Downsview, Hudson Yards, a mixed-use development in New York, also presents a case of large-scale urban projects that integrate commercial, residential, and public spaces through sustainable design principles. This shift encourages developers to focus on enduring value rather than immediate returns. Thriving developments will be those who effectively balance these factors.
As ESG considerations become central to construction and development decisions, advancements in green building technologies and new community engagement models will see innovation and adaptation across cultural contexts. Ultimately, this alignment between profitability, sustainability, and well-being presents new avenues for developers. Those who embrace this shift early are likely to see meaningful financial rewards while positively impacting communities and the environment.
This article is part of the ArchDaily Topics: Designing for the Common Good. Every month we explore a topic in-depth through articles, interviews, news, and architecture projects. We invite you to learn more about our ArchDaily Topics. And, as always, at ArchDaily we welcome the contributions of our readers; if you want to submit an article or project, contact us.
