Walk into any modern office, and you will notice the design, the lighting, the aesthetics, and the smart technology. What you may not notice is the “air” - an invisible but key factor in today’s real estate industry.
Indoor air quality (IAQ), long treated as an operational detail, is fast becoming the most critical determinant in real estate performance. By 2030, it will directly influence leasing decisions, tenant retention, and asset valuation.
Cost of poor air quality
The economic impact of poor air is significant. Globally, poor quality of indoor air costs the US economy more than $200 billion annually in productivity losses and absenteeism.
Harvard’s landmark COGfx study demonstrates the connection between air quality and performance. It showed that when indoor CO₂ levels rise above 1,400 ppm, cognitive function can drop by nearly 50%. By contrast, workers in well-ventilated offices scored 101% higher on decision-making tasks.
IAQ, therefore, is the difference between a workspace that energizes people and one that drains them.
Health implications building owners can’t ignore
IAQ is also a public health issue. The World Health Organization estimates that 3.2 million people die prematurely each year from indoor air pollution, While much of this is from homes in developing countries, the message is clear: air affects health.
In a commercial set-up, even “mild” poor air quality – high CO₂, volatile organic compounds (VOCs), or fine particulate matter (PM2.5) – can cause:
Headaches and fatigue
Reduced concentration
Respiratory irritation
Higher rates of sick leave
Interestingly, a Lancet Planetary Health study found that improving IAQ in offices could reduce employee sick days by up to 35%
IAQ as competitive edge
For building owners as well as businesses, high indoor air quality is a high-value proposition: healthier buildings = healthier people = improved productivity and retention.
In Washington DC, a commercial office that introduced real-time IAQ dashboards saw higher tenant retention, reduced complaints, and faster leasing cycles. Google, a vocal advocate for healthy workplaces, is investing in air monitoring across its offices. Its Healthy Materials Program and IAQ initiatives are designed not just to improve employee well-being, but to increase focus, creativity, and retention. The takeaway is simple - IAQ isn’t just about wellness anymore; it provides a competitive edge.
What tenants want
The shift in tenant expectations is already happening air quality has moved beyond good-to-have to being a deciding factor in leasing. For instance, JLL’s Future of Work report found that 64% of occupiers rank air quality above location when choosing space.
Renters now expect premises to have:
Air quality screens in building lobbies
Live air data they can check on their phones
Lease terms that promise a minimum air quality level
Clearly, sharing air quality info is becoming just as important as showing energy usage.
What owners gain
For owners, the return on high IAQ is measurable:
Rent premiums of 7-12% for healthier buildings
Tenants staying up to 18% longer
Air is no longer a hidden cost — it’s a visible value and building owners who can demonstrate their spaces support healthier living will stand out and lead the market.
Beyond smart and green
By 2030, “smart” and “green” won’t be enough. Occupiers and owners will expect verified air quality just as they expect proof of sustainability today. For decades, real estate was defined by location. In the next decade, it will be defined by air. Buildings don’t just offer space-they offer health, trust, and performance. And air is the clearest proof of all three.