Retail REITs Play Central Role in Tenants’ Waste Management Strategies

Many companies are taking steps to assess the business case for sustainability initiatives. REITs, in particular, are working to demonstrate how meaningful corporate responsibility initiatives are driving both positive environmental and social outcomes, while delivering strong business value.

For retail REITs, waste management and tenant engagement are two issues that are front and center. Retail landlords and tenants must work together to achieve operating cost savings and meet the increasing call to reduce waste, modernize collection, and prepare for increased reporting on plastics and packaging.

Fortunately, retailers and their landlords are well-positioned to respond to consumer demand for sustainability and take advantage of opportunities in the ever-growing circular economy.

Regency Centers’ Waste Management Strategy

At Regency Centers Corp. (Nasdaq: REG), waste management is a shared responsibility—and one the REIT approaches through strong partnerships with its tenants and a network of local recyclers, composters, and waste haulers. Across its shopping center portfolio, Regency works to promote responsible waste practices that reflect both its sustainability goals and the realities of local recycling infrastructure and regulations.

Recognizing that effective waste diversion often comes down to behavior, Regency has piloted site-specific engagement efforts in collaboration with tenants, property managers, and waste vendors. “This approach allows us to tailor solutions to each property’s unique needs and opportunities, while reinforcing our broader strategy around waste reduction and circularity,” according to Laura Davis, director, corporate responsibility at Regency Centers.

One recent project at a local shopping center focused on expanding composting access, increasing trash and recycling pickup frequency, and implementing routine waste management practices. These efforts raised the property’s diversion rate from 0% to 62%, resulting in meaningful cost savings. Insights from this effort are highlighted in the REIT’s 2024 Sustainability Report and are now helping shape best practices across Regency’s portfolio.

Retailers Facing Increased Regulations

Meanwhile, at a recent meeting of retail landlords and tenants at the ICSC ESG Committee, retailers pointed out that supply chain reporting required by Extended Producer Responsibility (EPR) laws is a “huge area of focus,” says Tamara Chernomordik, vice president of corporate responsibility at Kimco Realty (NYSE: KIM).

Chemomordik, currently serving as chair of the ICSC ESG Committee, noted that, “while not currently on the radar of many REITs, it seems like an opportunity for landlords to engage with tenants to support business-focused initiatives that result in positive environmental outcomes.”