The Rise of Healthy Buildings in the Post-COVID-19 Pandemic Era

Abstract

This paper leverages the COVID-19 pandemic as a natural experiment to examine the impact of health-conscious infrastructure on financial outcomes in the commercial real estate sector. Using data from listed real estate companies across 19 countries, we document a post-pandemic surge in investments in healthy buildings, particularly in regions with higher pre-pandemic rates of respiratory diseases, reflecting growing demand for health-oriented spaces. Building on this shift, we demonstrate how health-centric amenities are capitalized into firm values and stock prices, with firms prioritizing healthy buildings exhibiting greater resilience during pandemic-induced market disruptions and achieving superior financial performance post-pandemic. Granular cell phone traffic data further validate these benefits, showing a marked increase in daytime visits to healthy buildings after reopening, underscoring their perceived safety and appeal. Together, these findings highlight the growing importance of health-centric infrastructure in shaping investment behavior, financial performance, and mobility patterns in a post-pandemic world.

Keywords: healthy buildings, COVID-19 pandemic, commercial real estate, environmental amenities JEL classification Codes: Q51

JEL Classification: Q51, R33, I15, D22