Nature is Good for Business and People: the role of land conservation in commercial real estate

By Sasha Phillips | Associate Broker

Environmental conservation is an important piece of the commercial development puzzle. New projects bring jobs, tax revenue, and economic vitality, but preserving natural spaces helps ensure sustainable growth for people, our economy, and the environment. The most successful developments balance business needs with long-term community and environmental health.

The Value of Green Space

Access to green spaces is now a top priority for tenants, employees, and communities. Studies show that being close to nature improves your quality of life and can even boost productivity. Properties near preserved land, waterfronts, and trail systems consistently command higher rents and see lower vacancy rates. For office tenants, these spaces give employees a chance recharge while retail and mixed-use spaces see stronger foot traffic and longer customer dwell times.

The Downs in Scarborough serves as a perfect case study. It’s a 500-acre mixed-use development designed to embrace conservation and livability. There are 10+ miles of scenic trails and protected natural areas that provide critical wildlife habitats. The project sees consistently high demand for its space, and the access to nature has been a major selling point for tenants and buyers.

Environmental and Economic Benefits

Wetlands, forests and undeveloped buffer zones help manage stormwater, reduce flooding risks, filter pollutants, and help shield from unpredictable weather events—all of which can reduce infrastructure costs and protect or increase property values.

In Maine, coastal resilience and watershed protection are major concerns. Conservation is both good stewardship AND risk mitigation. For developers, this can mean fewer long-term maintenance issues, mitigating higher insurance costs, and stronger community support for new projects.

The Cost of Overdevelopment

Overbuilding often leads to heavy stormwater runoff, heat island effects, and diminished community character. It also strains infrastructure and prohibits access to the scenic views and outdoor recreation that makes Maine attractive to residents, tourists, and businesses in the first place.

Communities that grow without considering the environment can also face higher public costs for flood control, maintaining roads, and utilities. Conserved lands act as “natural infrastructure” providing flood prevention and air purification that would otherwise require costly engineered solutions.

A Balanced Approach

Smart growth strategies—like clustering development, redeveloping underutilized sites, and incorporating conservation easements—account for both economic and environmental goals.

Incorporating nature or setting aside land as part of a larger project can add value while preserving the landscape that makes a community attractive and unique. Many Maine towns encourage or require open space standards in their zoning and permitting processes.

From a financial perspective, land conservation can provide meaningful tax and estate planning advantages. Property owners who donate land or establish a conservation easement with a qualified land trust may be eligible for federal income tax deductions. This can both significantly offset taxable income and ensure the land is protected in perpetuity. Conservation easements can also reduce property and estate taxes by lowering the property’s assessed value, which can be particularly beneficial for families or investors seeking to preserve land across generations.

In Maine, Maine Coast Heritage Trust and the Land for Maine’s Future program offer guidance and resources for landowners interested in conservation. For commercial owners, partnering with a land trust can demonstrate a tangible commitment to sustainability while unlocking financial and reputational value.

The most successful developments balance business needs with long-term community and environmental health. As brokers, developers, and property owners, we play a key role in guiding the balance by helping our clients see that conserving land isn’t a constraint on growth, but an investment in resilience and quality of place.

https://www.apa.org/monitor/2020/04/nurtured-nature