A wise philosopher named Kermit the Frog once said, “It’s not that easy being green.” However, if you own or manage a commercial building, going green comes with plenty of advantages.
It’s no wonder that 76 percent of commercial real estate owners and investors plan to carry out deep energy retrofits in the next 12 to 18 months, according to Deloitte’s 2025 commercial real estate outlook.
Our previous blog entry, “4 Notable Commercial Real Estate Trends to Watch in 2025,” predicted that sustainability would be a top priority for tenants, consumers and regulators in the commercial real estate industry this year. In this blog entry, we’ll delve into the factors driving investment in energy-efficiency retrofits for commercial buildings.
Commercial property owners and managers stand to benefit in numerous ways by retrofitting buildings for energy efficiency. Here are some of the top reasons to go green.
1. Less impact on the environment.
The building value chain generates 37 percent of total carbon emissions worldwide, according to the World Economic Forum. If you want to minimize your impact on the environment, retrofitting your commercial building is a great way to make a difference. Comprehensive commercial building retrofits can decrease energy usage by as much as 40 percent, according to the American Council for an Energy-Efficient Economy.
2. Lower spending.
If you’re looking for ways to rein in spending, energy-efficiency retrofits can lead to considerable savings. The U.S. Department of Energy notes that energy-efficiency retrofits can lower operational costs for buildings, especially older ones. Traditional approaches to building retrofits can produce energy savings of 13 to 33 percent, and an integrated system retrofit can save 84 percent compared to energy usage prior to the retrofit, according to a 2018 study published in “Energy and Buildings.”
If you want detailed guidance, the Department of Energy offers these advanced energy retrofit guides for commercial buildings.
3. Compliance with current and future regulations.
Environmental, social and governance concerns have become a top priority in the real estate world in recent years, according to Deloitte. Retrofitting your property for energy efficiency will help ensure compliance with regulations related to energy efficiency, sustainability and environmental friendliness.
4. Greater appeal for potential tenants and buyers.
If you increase your property’s energy efficiency, you can leverage your greener status as a selling point with current or prospective tenants or purchasers who will share the savings.
If you want to increase your building’s energy efficiency, the Avalon Realty Associates team has experience with green techniques. For example, we can help you implement a wind generator or variable frequency drive (VFD) technology. Contrary to what Kermit says, sometimes it’s easier being green.
Take the first step toward environmentally friendly operations today by calling 847-506-1000 or emailing info@avalonreal.com.