Value Proposition

Understand the compelling investment case for PRS

The Case for Investment

There are various elements of performance that ensure investing in PRS technology is a fiscally sound strategy. Here we explore each factor, using our lab and live-site testing, and third-party research, to make the case for investment.

Central to PRS’ value proposition are the six key components featured below. Most client scenarios benefit from at least one of these components and we are happy to discuss options and explore likely outcomes on request.

Despite the differences in building conditions and age investment returns are typically very compelling, with likely return of capital within 24 months and a return on capital of at least 70%. Contact us to understand more.

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Our Value Proposition

Informed Optimization Across Multiple Dimensions

We designed our IAQ solution to address many of the major pressure points our clients are facing – from fiduciary obligations to economic imperatives – across complex operating environments.

There are six core components to PRS’ value proposition. Managing the inherent tension between and optimizing the balance across these components requires the right IAQ tools and information flow.

Whether focused on a strong offense and aspiring to lead the market with a progressive IAQ management program, or a strong defense and looking to protect asset values under pressure and from possible IAQ rights litigation, PRS enables effective, practical and cost-effective action.

Operating companies and asset managers naturally have multiple, key stakeholders who stand to gain across this PRS-driven value spectrum:

C-Suite and Board of Directors
Human Resources, including HSE Leadership
ESG Leadership
Facility Manager
Risk Manager

Enhanced Occupant Wellbeing

Harvard public health study shows IAQ significantly impacts employees’ cognitive function, including response times and ability to focus.
Pathogen-free air will reduce absenteeism caused by airborne infections, and should reduce the cost of employee health cover.

Reduced Operating Costs

PRS ensures safe air within the building, allowing higher recirculation rates and operational efficiency with less energy used on heating and cooling.
The removal of micro pathogens means filter density can be reduced slightly, lowering friction and therefore fuel consumption

Proven ESG Accountability

According to Deloitte Insights strong ESG performance can reduce the cost of capital. US$ 1 trillion has been invested into ESG funds in recent years.
Proactive safe air measures will increase ESG credentials leading to better rental prospects and higher yields.

Facility Management Efficiency

Safe air will allow higher recirculation levels with less dense filtering, reducing fuel use and plant equipment wear and tear.
PRS is shown to reduce mould, a major problem due to increased ‘fresh’ air circulation suggested by pandemic protocols.

Improved Risk Management

As IAQ becomes a bigger focus for employees, providing the safest workplaces will protect against possible litigation.
A safer working environment will ensure a reduction in healthcare costs while increasing employee loyalty.

Asset Value Protection

Buildings with demonstrable environmental and occupant wellbeing benefits are shown to enjoy higher rents.
Lower grade properties risk obsolescence as the rental market shrinks due to the increase in hybrid working habits.

Enhanced Performance: IAQ significantly impacts employees’ cognitive function, including response times and ability to focus; may also affect their general productivity (Source: Harvard School of Public Health 1)
Other Productivity Implications: reduced absenteeism and increased retention in health-oriented built environments (Source: STOK 2, IWBI 3)
In/outdoor Management Requirement: roughly >50% of ambient or outdoor air pollution exposure occurs indoors

Market Liquidity Impact: USD 1 Trillion into ESG funds in past 2 years (source: Harvard Business Review – Apr 2022 4); > USD 7 Trillion of global RE is managed by entities tracking green building performance (Source: Global Real Estate Sustainability Benchmark (GRESB))
Cost of Capital Impact: ~60% of listed companies CFO’s report that ESG performance has a high or moderate impact on cost of capital (Source: Deloitte Insights, Aug 2020 5)

Reduced Risk Correlation: leading brokers such as Marsh McLennan actively working on correlating reduced risk with demonstrated ESG accountability – and thereby potentially lower premiums, better terms and/or broader underwriter participation
Other Possible Benefits: reduced health insurance costs, potentially reduced GL costs related to possible litigation defence

Lease-up and Retention: Adoption rate of healthy spaces 2x of those w/out health emphasis and avg lease term of 88.3 months for spaces with health-focused attributes vs. 75.3 months for those w/out (Source: MIT Real Estate Innovation Lab 6)

Big Target: building energy efficiency is critical: buildings consume ~40% of the world’s fossil fuel energy production and air handling represents 40-45% of that amount
Demonstrated Improvement: LEED-certified buildings save 20-40% of energy compared to non-certified peers based upon > 8 Billion sq ft globally of LEEDs-certified real estate (in 2019)

Value Defence and Restoration: In the US the reality of falling prices is now very real as older office buildings are deeply discounted as debt becomes unserviceable (Source: Bloomberg News, Feb 2024 7)
Green Premium: worth ~6-8% increase in rents and leasability (UK EPC requirements) and 14-16% in capital values (Source: CBRE study, Aug 2022 8)
Health & Wellbeing Premium: 4.4% and 7.7% higher effective rents in Boston, MA tied to healthy building standard ((Source: MIT Real Estate Innovation Lab 6)

1 Harvard School of Public Health – Sep 2021: Impacts of Indoor Air Quality on Cognitive Function

2 Stok – Apr 2021: The Financial Case for High Performance Buildings

3 IWBI – Sep 2023: Buildings as a Prescription for Health

4 Harvard Business Review – Apr 2022: Yes, Investing in ESG Pays Off

5 Deloitte Insights – Aug 2020: Financing a Sustainable Transition

6 MIT Real Estate Innovation Lab – Feb 2021: The Financial Impact of Healthy Buildings

7 CBRE – May 2023: The Value of Sustainable Building Features

8 Bloomberg – Feb 24: The Brutal Reality of Plunging Office Values Is Here

“I am honored to be joining the PRS Advisory Board at a time when reduced energy consumption and improved air quality are the watchwords for mitigating climate change and improving human health. Our shared goal is to accelerate the path for people-first places that can support the health of millions of people now, and in the future. It’s an exciting time.”