Energy Efficiency Improvements: Do they Pay?

TLDR

The study discusses reasons and challenges associated with pursuing energy‑efficiency improvements in commercial real estate. The study aims to quantify the economic gains from investing in energy‑efficiency improvements in commercial real estate. The authors benchmark EEI performance using the LEED program and review a series of commercial‑real‑estate projects that implemented such improvements. Although data limitations prevent generalization, the results suggest that EEI is a worthwhile investment for owners, operators, and tenants of commercial real‑estate buildings.

Abstract

This study attempts to quantify the economic gains associated with investment in energy efficiency improvements (EEI) for commercial real estate. We discuss reasons and challenges associated with taking on this endeavor. Benchmarking the performance of these improvements is discussed through an explanation of the Leadership in Energy and Environmental Design (LEED) program. A series of projects for which investment in EEI has been conducted are reviewed. While data limitations preclude the ability to generalize our results, we believe they demonstrate an area of real estate investment that should not be overlooked. The findings should appeal to owners and operators of commercial real estate, as well as tenants who occupy space in these buildings.