Commercial Real Estate Applications for LED Savings

Energy use is the single largest operating expense in commercial office buildings, representing approximately one-third of typical operating budgets and accounting for almost 20 percent of the nation’s annual greenhouse gas emissions.

In a 200,000-square foot office building that pays $2 per square foot in energy costs, a 10 percent reduction in energy consumption can translate into an additional $120,000 of NOI. At a cap rate of 8 percent, this could mean a potential asset value boost of $500,000!

Commercial real estate applications for energy strategy includes  any multi-family residential, office, industrial, or retail property that can be bought or sold in a real estate market.

Office buildings waste up to one-third of the energy they consume.

Low-Cost Measures

• Measure and track energy performance.
• Turn off lights when not in use or when natural daylight can be used.
• Set back the thermostat in the evenings and other times when a building is unoccupied.
• Educate tenants and employees about how their behaviors affect energy use.
• Improve operations and maintenance practices by regularly checking and maintaining equipment to ensure it is functioning efficiently.
• Optimize start-up time, power-down time, and equipment sequencing.
• Revise janitorial practices to reduce the hours that lights are turned on each day.
• Use ENERGY STAR Target Finder to integrate efficiency goals into the design of new properties.

Cost-Effective Investments

• Engage in energy audits and retrocommissioning to identify areas of inefficiency.
• Install energy-efficient lighting systems, ENERGY STAR qualified compact fluorescent lights (CFLs), light-emitting diode (LED) exit signs, and occupancy sensors where feasible.
• Install window films and add insulation or reflective roof coating to reduce energy consumption.
• Purchase energy-efficient products like ENERGY STAR qualified office and commercial food service equipment.
• Retrofit, upgrade, or install new heating and cooling equipment to meet reduced loads and take advantage of efficient technologies.
• Use a performance contract to guarantee energy savings from upgrades made.
• Work with an energy services provider to manage and improve performance.

ENERGY STAR Offers Assistance for Commercial Real Estate Planning:

• Guides and manuals
• Facility benchmarking
• Training
• Institutional purchasing
• Technical support
• Financing resources
• Emissions reporting
• Third-party recognition
• Motivational campaigns

Recognition for Energy Savings Achievements

Earn the ENERGY STAR: The top 25 percent of energy-efficient buildings in the nation may qualify for the prestigious ENERGY STAR label. www.energystar.gov/eslabel

Become an ENERGY STAR Leader: ENERGY STAR partners who demonstrate continuous, portfolio-wide improvements qualify for recognition as ENERGY STAR Leaders. www.energystar.gov/leaders