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By becoming more energy efficient, commercial real estate (CRE) organizations can reduce operating expenses, increase property asset value, and enhance the comfort of their tenants.

Energy represents as much as 30 percent of a building's operating costs. Now consider this: undertaking energy efficiency measures can reduce energy consumption - and thus, utility bills - by 30 percent or more. These savings add directly to the bottom line. A 30 percent reduction in energy consumption can lower operating costs by $25,000 per year for every 50,000 square feet of office space. The best part is that these improvements to energy efficiency can often be attained through no-cost or low-cost projects that also enhance the indoor environment of commercial office buildings.

Besides energy cost savings, thoughtful energy management provides several less tangible financial benefits. An important one has to do with investor perceptions. Recent studies have linked energy management to stock market performance. Investors are discovering that management teams who are successful at grappling with the complexities of energy and environmental management tend to also have the internal capacity needed to safeguard the overall financial health of a company. This relationship can be seen in the recent pressure by investor groups on businesses to disclose environmental and energy performance as part of their annual reporting.

Increased asset value is another benefit derived from energy efficiency measures. For every $1 invested in energy efficiency, asset value increases by an estimated $3. That means that energy efficiency can be used as a low-risk, high-return investment. Savvy business managers are coming to appreciate that energy efficiency is an excellent means to spur internal growth, especially in income properties where any reduction in operating costs directly translates into an increase in net operating income (NOI). In tight real estate markets where the ability to grow through investments in building or buying may at times be constrained, increasing NOI is a viable alternative. Energy-efficient buildings also help attract the most discerning tenants and buyers


  • Reduce carbon emissions
  • Provide a better work space
  • Project may qualify for rebates/tax deductions

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