Landlords & Property Owners: Make a Direct Impact on Your Building's NOI by Investing in Energy Efficiency
- Are your energy systems up-to-date? Some of
the leading energy drainers are electrical and gas systems that are outdated and not nearly as cost-effective as newer smart systems designed to automatically monitor and adhere to the owner's energy needs. Although there is an upfront cost to install new systems, the future savings will become apparent quickly.
- Know your local climate! Designing your HVAC systems to reflect regional
climate will create a dynamic system that is only in use as much as it is necessary to keep you and your tenants comfortable. Programmable thermostats area a great first step!
- Take advantage of available tax credits and deductions. Many energy related upgrades and purchases qualify, further reducing payback time and ramping up real estate value. (See helpful links
below.)
- Benchmark your project against two standards - 1) Best Practices and 2) the Average. Obviously, matching Best Practices improves profitability. Not so obviously, being able to demonstrate to a lender, a buyer and to a tenant how your building's energy efficiency exceeds the average may mean you get a better loan, a better sale price, a higher rent/sqft and a higher
occupancy.
Tenants: Take Control Over Your Energy Costs
- Ask your landlord what they are doing to create a comfortable yet energy efficient environment. Your landlord may already have implemented numerous energy efficient systems in the building or the
landlord may be receptive to ideas that both of you can benefit from. Keep the dialog open to stay informed about your landlord's progress.
- Make smart decisions about the business machines, electronics and lighting that you bring into the space. Every low-cost measure that you take such as programing machinery to switch to "stand-by mode" when not being used to investing in LED
lighting will make an impact on your overall energy costs.
- Be cautious when your suite utilities are not separately metered and you are billed on the basis of a "one-size-fits-all" energy cost plan. Each tenant in a commercial space is different and you may be able to tailor your energy bills to reflect exactly what you use by installing a submeter. The accuracy provided by
submetering is often overlooked by both tenant and landlord.
- Whether the janitorial bill is paid by tenant or landlord, consider choosing a quiet daylight hour janitorial service. This will eliminate the need of night lighting and electrical use. When you add that utility cost to the service fees, janitorial costs can be
pricey!
HELPFUL LINKS:
Ann Arbor Energy: PACE Program & Incentives: Click Here Energy Incentives for
Your Business from DTE: Click Here Energy Efficient Lighting Tips from DTE: Click Here
CONTACT A COMMERCIAL REAL ESTATE EXPERT.
Ron Dankert, Swisher Commercial associate broker and owner, would be happy to answer any questions you may have regarding utilities. As a property manager and active broker in the Ann Arbor real estate business community for over 40 years, Ron
has the experience and expertise to guide you to smart real estate decisions. Call Ron at (734)662-3517 or email him at [email protected]. 
