Our industry is engaged in an important dialogue to improve the efficiency and resilience of real assets through transparency and industry collaboration. This guest article contributes to that conversation and does not necessarily reflect GRESB’s views or position, nor does it represent an endorsement. The GRESB Insights blog is designed to share diverse industry perspectives and foster informed discussion on key topics for real assets investments.
In the U.S., the term “ESG” hasn’t been a popular one lately, largely because of the “E.” To be fair, the “E” for “environment” was for years the most obviously measurable. But I argue it’s just as easy to measure the “S” for “social”.
Not only that, the “S” has been quietly stealing the spotlight. Not because it’s new, but because our social fabric feels more fragile than ever. Connection has become the most important performance metric because it directly ties to retention.
From aisles to offices: Rediscovering connection
I still remember the first time I went to a grocery store in person during the pandemic.
I briskly—though fearfully—pushed my cart through the refrigerated aisles, quickly grabbing eggs without checking to make sure they weren’t broken, snatching the first milk that looked close enough to my usual brand (it wasn’t). Every movement felt calculated, every other shopper a potential threat. I felt like I was in a horror movie.
Contrast that with one of my favorite office experiences months before. Admittedly, I’d take long “bathroom breaks”—not because I needed a break, but because our building janitor was hilarious. We’d chat about her kids’ homeschooling, our weekend plans, and, if I’m being brutally honest, a LOT of office gossip. (Not the mean kind; the overly-nosy-neighbor kind.) That ladies’ restroom was often the brightest spot in my day.
When our company debated whether to move into our own office space, I always advocated for staying put—not because of square footage, but because I genuinely liked the people who made that building feel alive.
Standing in that lonely grocery aisle, I would’ve given anything to be back in that bathroom, laughing with her. And these days, I constantly remind myself of how grateful I am to putter around in a busy retail center, lazily chatting with the clerk about our holiday shopping
That’s the “S” in “ESG”. It’s the difference between using a space and belonging in one.
The “S” is evolving—From soft skills to hard metrics
While the term “ESG” may be softening in popularity, its social dimension is hardening in impact. GRESB’s Health & Well-Being and Engagement modules now recognize what many operators and property managers have known intuitively: Relationships drive retention.
Grace Hill’s KingsleySurveys data shows that strong management communication and problem resolution are two of the top five best predictors of both overall satisfaction and renewal intent across property types.
This isn’t “nice-to-have” data. It’s the foundation of asset value. When tenants feel heard, they stay. When they feel ignored, they move.
It’s no wonder that GRESB’s latest indicators are emphasizing stakeholder engagement, employee satisfaction, and occupant well-being as measurable aspects of social performance. The social isn’t separate from the financial—it’s the bridge between them.
Loneliness: The new retention risk
In 2023, the U.S. Surgeon General called loneliness an epidemic, linking it to increased absenteeism and decreased workplace satisfaction. In real estate terms, that means lower tenant engagement and higher turnover.
Grace Hill’s “CRE Emerging Trends Report: Shaping Tenant Sentiment in 2026” report reinforces this pattern. Across asset classes, we saw tenants reprioritizing management services and building features over traditional sustainability goals. Recycling bins and solar panels may no longer sway renewal decisions, but communication and care from management consistently do. Tenants aren’t disengaging from ESG—they’re redefining the “S” around human connection.
In the last year, Grace Hill KingsleySurveys data shows that tenants who report regular communication from management are significantly more likely to renew their leases, even in challenging market conditions. Conversely, over the last year across all commercial property types, 14.9% of tenants said they were never contacted during the year. That’s not just a missed connection; it’s a missed opportunity to build loyalty.
Connection is now a competitive advantage. And in a post-pandemic world, buildings that foster social belonging—through responsiveness, empathy, and proactive communication—are the ones tenants want to call home.
Responsiveness is the new retention strategy
Responsiveness is more than a customer service KPI. It’s the visible proof of respect. When managers respond quickly to maintenance requests, follow up on concerns, or simply check in to ask, “How are things going?” they’re building trust. That trust translates into higher renewal rates and stronger GRESB scores.
This is why so many Grace Hill KingsleySurveys clients use tenant, resident, investor, and employee surveys as both a feedback tool and a social metric. It’s how portfolios measure the human pulse of a property.
A friendly property manager might not show up as a line item in your P&L—but when their responsiveness keeps a tenant renewing a five-year lease, the ROI is clear.
Reclaiming the “S”
It’s tempting to think the “S” in ESG is too abstract to measure. But the truth is, it’s already in your data: Every survey response, every communication score, every comment that begins with “I wish management…”
The “S” lives in those relationships. It’s the way people feel about where they work, live, and interact.
The ROI of relationships isn’t theoretical. It’s renewal, retention, reputation—and a little less loneliness for everyone walking the halls of the buildings we manage.
References
This article is based on insights from Grace Hill’s KingsleySurveys data used in GRESB-aligned reporting.
This article was written by Jen Tindle, VP of Strategic Insights at Grace Hill. Learn more about Grace Hill’s KingsleySurveys here.