Shopping centers soon to seek social impact certifications

Retail real estate developers already seek certifications for adhering to benchmark standards for sustainability set down in their environmental, social, and governance goals. Now they’ll be doing the same to assess the “S” in their ESG policies.

Soon some 25 companies will enter pilot programs checking whether their stores or shopping centers have sensory deprivation rooms for people who get overwhelmed in crowded places, or dimmed light areas for people with light sensitivity, or lactation rooms for moms.

They will be undergoing the SEAM (Social Equity Assessment Method) program—the world’s first social impact certification, accreditation, and membership program. SEAM assesses a real estate business’s social goals, reviewing how it regards such things as neuro-diversity, mental health, and gender identity.

“It’s been amazing and surprising how in demand this kind of program is,” said Rainey Shane, who founded SEAM in 2018 along with fellow JLL exec Alex Demesthias. “JLL has clients all over the world requesting some type of social innovation. Every kind of asset is interested in it, and we foresee that retail will get brand recognition from it. Milliennials and Gen Zers make their buying decisions based on social responsibility.”

The SEAM standard focuses on a series of key objectives that support the UN Sustainable Development Goals. It aims to set the bar for social equity in commercial real estate through project certification, professional accreditation, and membership in a community of like-minded professionals.

Developer Urban Visions was the first organization to register a SEAM Certification pilot project for its residential project in Seattle’s Pioneer Square District, The Jack.

“A certification that solely focuses on social equity within the built environment is long overdue, and we are excited to support SEAM efforts on our projects,” said Urban Visions executive VP Todd Lee.

Shane holds that, within the next five years, social impact accreditation will become a requirement for real estate owners and developers.

“Both New York and California have passed social reporting regulations that open avenues to financing, tax credits, and lower interest rates,” Shane said. “At some point, it will play into your benefit analysis.”