Building managers, owners, or other commercial real estate (CRE) stakeholders know the stats: at 35% of all electricity use, commercial property is one of the top end-users of energy in the United States, with energy often the single largest operating expense for property owners, contributing up to 30% of all operating expenses (that’s $2.27 per square foot!). But even more staggering is the U.S. Department of Energy (DOE) estimate that on average, 30% of this energy is wasted. Savvy building managers know that a tactful energy management strategy is the best defense against lost dollars – but it can also help attract and retain tenants by differentiating buildings in a highly competitive market.
So if you’re thinking about how to formulate your approach to energy efficiency, where do you start? Some questions that might be on your mind include:
- How will energy efficiency investments increase net operating income (NOI) and asset value?
- How can LEED or ENERGY STAR certification help attract high quality tenants?
- What energy efficiency measures can be implemented without impacting tenant comfort?
This post addresses these questions and others, and identifies some of the specific challenges and opportunities facing energy efficiency in the commercial real estate sector.