Efficiency Reigns

Commercial Survey

By Erica Rascón on Nov 18, 2015 in Technology

If you haven’t prioritized the energy efficiency of your commercial properties, you’ve already fallen behind the curve. Corporate mandates requiring the lease of green buildings have nearly tripled. Prospects are willing—and now able—to pay a premium for energy efficient spaces.

The Institute of Building Efficiency issued a survey to 687 VPs, facilities managers, owners and C-level personnel across the nation. Their buildings range from under 50,000 square feet to beyond 500,000 square feet. The results of the report revealed that energy efficiency has become a top priority and growing investment for building owners.

When asked about their views on energy efficiency, 46 percent of survey respondents said they paid “a lot more” attention to energy efficiency in the previous 12 months than they had in prior years. Of the executives surveyed, 68 percent plan on increasing their investments in efficiency and renewables.

In the past, third-party rebates and incentives furnished the bulk of financing for commercial efficiency upgrades. Yet with such resources dwindling, owners are earmarking monies within their own budgets. Financing called “energy- or climate-specific set-asides within the capital budget” nearly doubled last year to 30 percent from 17 percent in 2012. Meanwhile, energy service agreements increased to 32 percent from 21 percent in 2012/2013. The benefits of energy efficiency have proven their worth.

Executives, managers, and tenants choose energy efficient buildings over conventional buildings. This year, 36 percent of respondents expressed that they would be willing to pay top dollar for an efficient space. This is more than double the 15 percent of participants who reported that they would pay a premium in 2013. Many are willing to pay the premium because efficient spaces are a mounting requirement by leadership. 10 percent of respondents reported that corporate policy mandates the lease of certified green buildings. This figure is up from 4 percent in 2013.

Building owners have many options when it comes to efficiency improvements. To notably improve the HVAC efficiency of large commercial buildings and campuses, owners are turning to Yardi Load Based Optimization System ^TM (LOBOS). The LOBOS system integrates with most modern HVAC systems to reduce energy consumption while enabling automated demand response participation and system-level fault detection and diagnostics. The end results include improved tenant comfort and lower utility costs.

For those seeking an overall energy and utility management solution, Yardi Energy Solutions^TM (YES) automates energy management and utility billing. Built-in analytics monitor resource consumption, identify leaks, and facilitate the recovery of overage charges.

To keep a competitive edge and maximize rents, building owners must invest in efficiency upgrades. Are you ready to excel? To learn more about LOBOS and YES, register for a webinar.