Energy Overview

Energy Overview

Energy and Commercial Real Estate

In the United States, commercial buildings consume – and often waste – a huge amount of resources. While energy efficiency initiatives typically offer double-digit returns, the majority of building owners, property managers, and tenants haven’t yet taken action.

Buildings in the United States are responsible for:
Energy Consumption Electricity Consumption Waste Output CO2 Emissions Water Consumption
39% 74% 65% 39% 12%

Source: USGBC

Energy and Asset Performance

Historically, electricity prices have risen about 5% per year. Rising costs can erode corporate profits and depress real estate asset values. In a market defined by excess space, “energy hog” properties are certainly less attractive to tenants than green buildings, and present greater credit risks to lenders.

Boosting Financial Returns through Energy Efficiency & Renewable Energy

Consider: for a building that trades at an 8% cap rate, every dollar of operating expense reduction adds $12.50 to the building value. Most commercial real estate buildings can save between 10-30% on energy expenses by changing behavior, improving maintenance, and making modest capital investments. Beyond energy efficiency improvements, renewable energy can further improve financial performance.

With over 2,000 time-sensitive federal, local, and utility incentives available to property owners, the time is right to explore your opportunities. Contact us to discuss options for your building.

Take the first step towards energy savings today

 

In just 15 minutes, you and our energy experts will discuss your business, identify potential opportunities, and develop a go-forward plan.

Profitable Sustainability™
is at your fingertips.

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