Demand For Energy Efficiency In Buildings Brings New Resources For Tenants
Growing demand for energy efficiency in buildings helped spur creation of new resources to make commercial tenant spaces more energy efficient.
There is evidence that demand for greater energy efficiency in buildings is increasing. According to a research paper entitled “The Economics of Green Buildings,” by Piet Eichholtz, Nils Kok, and John Quigley, energy-efficient green buildings identified by Energy Star or LEED certification command rent premiums of approximately 2.5 percent and sales price premiums averaging 13.3 percent.
High-quality, sophisticated tenants increasingly demand that base-building central systems be highly energy efficient and often prefer a net lease structure, with actual energy use and energy-efficiency investments within the leased premises determining their own utility costs. The transparency of metered energy use and accountability through data reporting will likely increase through tenant demand and private real estate market action, yet it is also set to become more widely adopted through public frameworks such as energy disclosure regulations gaining momentum in cities, forthcoming updates to energy codes, and next-generation energy performance recognition programs.
The Natural Resources Defense Council has developed resource guides to help stakeholders capture the potential energy savings in tenant spaces. These are now available online to guide commercial office owners, managers, and tenants, providing a set of tools to help select cost effective energy-saving measures with strong payback that provide the greatest return on investment over the lease term. The resource guides are available here.