Property Managers: Four Benefits of Investing in Energy Efficiency
March 19, 2018
As a property manager – whether your building is commercial, industrial, retail, or multifamily – you know that investing in your properties is key to investing in the success of your business. And taking action to reduce energy usage is one of the smartest investments you can make.
Lighting system upgrades, HVAC improvements, weatherization, and implementing building automation and control systems are a few of the ways you can improve the energy efficiency of your properties. More than just reducing energy usage, these upgrades can boost your business.
Here are four ways investments in energy saving solutions pay off.
Reduced operating expenses
Making energy efficient upgrades leads to lower energy bills for you or for your tenants. Even if your tenants are responsible for paying their own energy bills, this is still a great investment for your business. Tenants appreciate a landlord that helps them lower their operating expenses and increase their comfort and are more likely to renew their lease as a result.
Increased rental income
Energy saving investments increase current tenant satisfaction while also making your properties more attractive to prospective tenants. As a result, you’ll see higher occupancy rates. ENERGY STAR® estimates that efficient commercial properties earn 8% more in rental income per square foot.
Increased net operating income
Lowering operating expenses will increase rental income, positively impacting one of your most important KPIs: net operating income (NOI). According to ENERGY STAR, a 10% decrease in energy use could lead to a 1.5% increase in net operating income.
Increased asset value
When you improve the energy efficiency of your properties, they become more in-demand, adding value to your portfolio. The most efficient properties sell for prices as much as 15% higher on a per-square-foot basis, according to ENERGY STAR data.
Ready to check out opportunities for your properties? The Sponsors of Mass Save® offer incentives and financing on energy saving solutions as well as training on the latest equipment and best practices. Learn more here.Business Energy Savings