Green Is the New Green
Real estate energy efficiency is no longer a “maybe.”
Energy conservation in buildings is not a new idea. For decades, it seems like each year has brought a new kind of lighting technology, a startup energy saving company, proposed subsidies and regulations, better insulation materials, smart monitoring systems, and renewable power sources. They all have one thing in common: the promise to revolutionize commercial energy efficiency and become the new, higher, standard of profitability and environmental responsibility. Often, they sounded too good to be true because they were. Sometimes these advancements were real, but they didn’t really meet your property’s needs. And there’s always been the risk of making choices, purchases, and commitments to technology that then becomes obsolete, forcing you to make even more changes down the line.
You might be tempted to just skip the whole topic, if energy wasn’t your #1 operating expense. But if you’re like most property owners, the energy your properties use is a big expense factor. Just a slight increase or reduction in monthly utility bills can impact your cap rate and property value in a very big way, so real estate energy efficiency represents one of your biggest challenges. The good news is that the industry is finally hitting a tipping point on all those partial solutions that have been building up promise for years, so improvements to commercial energy efficiency are also your biggest opportunity. You know all those hippy utopia things that everyone would need to have “some day?” Well, don’t look now but…
Some Day is Today
That time when energy efficiency was going to be really happening? It’s now. From ubiquitous Energy Star and LEED certifications to increasingly-affordable solar, wind, and other renewable power in most regions– greener, smarter, more efficient options for your buildings are becoming more and more mainstream all the time. The current boom in LED lighting is one of the most visible signs of the new viability of commercial energy efficiency. Advances in reliability and reductions in price have made high-efficiency lighting, improved HVAC, and insulation a no-brainer for energy conservation in buildings, whether in new construction or as part of a retrofit.
The promise for investments in real estate energy efficiency has always lingered on the idea that they would “pay for themselves.” Taking on the cost and risk is still a big step, but a smaller carbon footprint and a bigger bottom line for your buildings are no longer completely at odds with each other. Increasingly, it’s quite the opposite.
The tenants you want to attract (and the customers they want to attract) are more aware and selective about how green (or outmoded) buildings like yours are. Naturally, they vote with their dollars, which affects the sale and rental values of your property. They also vote with their votes, which is helping to raise regulatory issues in many parts of the country. Failure to get out in front of all these important factors can make property owners painfully aware of…
The High Price of NOT Investing
If all of that potential upside to upgrading the commercial energy efficiency of your properties isn’t enough of a carrot, you may want to consider the stick: pressure to increase real estate energy efficiency is increasing from both market forces and government regulators. Even as the cost of going green becomes more reasonable, the price of NOT investing is only going to get higher.
Over 30% of greenhouse gas emissions come from buildings, and that paints a regulatory target on them. Energy efficiency requirements for permits of construction and operation are facing upward pressure in states eager to combat climate change. Dragging your feet on becoming more energy efficient (and getting the LEED and Energy Star certifications to “prove” it) can stand in the way of renovating and expanding your buildings. Staying ahead of these possible snags can be as simple as engaging an energy saving company, and the effects can mean more than just keeping the inspectors happy.
Even bigger and more widespread pressures towards going green are coming from the real estate market and the general shopping public. Recent studies show that properties lacking LEED and Energy Star certifications had excess capitalization rates as much as 35% lower than comparable certified buildings. The perception of energy efficiency has become a big factor in the reality of property values.
More complicated than ever. Or not.
If you think all these efficiency advances and proven benefits make energy conservation in buildings STILL sound more like a confusing headache than a golden opportunity, you’re not alone. The constant progress and shifting landscape make commercial energy efficiency a moving target. New technologies are just going to keep on emerging and evolving. What works best today might be next year’s cautionary tale.
Managing all of this involves a level of constant due diligence and financial risk that most property owners are not comfortable maintaining, and so a new kind of energy saving company is addressing exactly these concerns and needs by bringing the entire process down to one change that changes everything.
Get Paid to Save Energy, Money, and the World.
Budderfly believes that you shouldn’t have to spend your own money to enjoy all the benefits of going green. So, they use a revolutionary Energy Efficiency as a Service Model, paying for comprehensive efficiency technology upgrades for your facilities, thoroughly monitoring and controlling energy usage, and guaranteeing years of dramatic energy savings throughout your buildings and in your pocket.
Using only Budderfly’s money, your buildings can receive a customized energy-saving solution that combines premium LED lighting, HVAC improvements, superior insulation, point-of-consumption monitoring, and unprecedented control of energy usage and elimination of waste.
This is not a one and done relationship. As new technology becomes available, Budderfly implements the best and most effective advances. They even pay for ongoing energy savings component maintenance and for converting your building to renewable resources like solar, wind, and geothermal. Eliminating the risk and guesswork, your buildings can be on the smartest, greenest, most energy-efficient facilities grid on the planet. All it takes is one change, and that change begins when you talk to Budderfly today.