To quote DeepRoot Vice President Al Key: “No matter the issue, trees have an impact.”

This axiom is certainly true: Thriving urban forests are an important feature of any healthy city. The environmental advantages of these trees are obvious, everything from carbon sequestration and stormwater management to air-quality improvement. Even the financial impact of these environmental benefits are fairly well known, as trees provide cities with services that add up to real dollars and cents.

But did you know that, independent of their sustainability advantages, the very presence of trees can boost the local economy? The truth is that people enjoy spending time in green, shady space — and this translates to an uptick in business, retail sales, and home value.

Retail Sales

Healthy urban forests in retail areas offer a pleasant experience for visitors and shoppers, giving them reason to slow down, take their time, and ultimately spend more money. And this of course leads to greater value for both property and sales in the area. According to a study published in the Journal of Arboriculture, commercial rental rates were 7% higher for properties having quality landscaping versus those without.

The study likewise found that shoppers were willing to pay about 10% higher prices for products in shopping districts with tree coverage than those without. There is also some evidence to suggest that consumers will travel greater distances to shop in tree-covered retail districts.

Consumer and Employee Perception

What’s interesting is that the perception of businesses and their services are enhanced simply by being in the presence of vibrant greenery. A University of Washington study found that consumers gave a 30% higher rating to business’s product quality in tree-heavy retail districts versus those without. Consumers also gave their customer service higher ratings for these businesses, with a 15% boost over retailers without surrounding trees.

It’s also fairly remarkable that access to green space helped create a more reliable workforce. A study on biophilia found that 10% of employee absences could be attributed to architecture with no connection to nature. And that call center workers with a view of green space answered calls 6-7% faster than those without.

What does this mean? It means that trees and green space offer intangible boosts to people’s health, mood, energy, and both consumer and employee behavior.

Property Value

Trees also have the ability to enhance residential neighborhoods, which leads to higher home values and property tax revenue for cities. The National Park and Recreation Association states that homes adjacent to parks and open green spaces command 8% to 20% higher prices than comparable homes without this amenity. Indeed, an analysis recorded in the Wall Street Journal found that homes with significant street tree coverage sold for $7,130 more than homes without nearby street trees.

Conclusion

New retail and mixed-use developments may not want to invest in trees, viewing the front-end cost as prohibitive and without financial benefit. But the truth is that healthy urban forests can serve as a cornerstone feature of revitalized development — and an investment in robust greenery can pay literal dividends on the back end, in addition to its nearly endless environmental advantages.