…to increase asset value:
For owners - every $1 invested in energy efficiency increases asset value by $3. The payback period for energy efficiency upgrades continues to shrink as technologies, products and best practices improve. Energy efficiency is an excellent means to spur internal growth - especially in income properties where any reduction in operating costs directly translates into an increase in NOI.
…to attract and retain the best tenants and employees:
Energy-efficient buildings are proven to attract the most credit-worthy tenants and buyers. The most excellent companies in the world know that the best and the brightest want to work in environments that offer fresh air, daylight and a reflection of their value systems.
…to satisfy stakeholders:
Recent studies have linked energy management to stock market performance. Management teams who are successful at grappling with the complexities of energy and environmental management tend to also have the internal capacity needed to safeguard the overall financial health of a company. Many of the most common challenges faced by REIT executives, such as lowering expenses, meeting tenant demands and satisfying shareholders, can be advanced using sustainable solutions. There has been dramatic growth in institutional investor activism on environmental sustainability and all publicly traded companies should be anticipating powerful new environmental disclosure and performance requirements.
…to stay alive:
Whether you own, manage or occupy a large amount of commercial space, the business case for energy efficiency retrofits – and the enhanced enterprise environment they deliver – is solid. Those who ignore this business case do so at their peril.
“The pace of a firm's adaptation to climate change is likely to prove to be another of the forces that will influence whether, over the next several years, any given firm survives and prospers – or withers and quite possibly dies”. Lehman Brothers, February 2007 |
