Looking to increase building income without increasing lease rates and jeopardizing tenant satisfaction? Efficiency Dividends from energy savings might be the answer you've been looking for.

In commercial real estate (CRE), building owners, asset managers, and property managers always want to increase building income. One way to rapidly increase income is to leverage efficiency dividends from energy savings. Building owners can generate new revenue streams through efficiency dividends by implementing building improvement projects that measurably reduce and validate energy consumption. (Learn more about efficiency dividends and how they work here).

By investing in the right building improvements and upgrades, building owners can reduce their energy bills, increase the value of their properties, and retain their high-quality tenants, all while generating an additional source of ancillary income.

Carbon Lighthouse offers technology and services to help Building Owners implement high-yielding efficiency projects across their commercial real estate (CRE) portfolio, regardless of the lease type. We ensure that building owners generate the highest Efficiency Dividends possible. You can contact us here to learn more and get a free demo on how Efficiency Dividends can work for your buildings. In the meantime, keep reading for a quick look into how building owners can leverage efficiency dividends from energy savings to generate ancillary income:

Reduced energy bills

• Building owners can reduce energy bills by making energy-efficient upgrades such as LED lighting retrofits and HVAC optimization. These savings are passed through to tenants through lower operating expenses (OpEx). At the same time, Efficiency Dividends are created and returned to the building owner in the form of cash generated by the amount of energy reductions not retained by tenants.
• Additionally, by reducing energy consumption, building owners can avoid costly peak-demand charges, adding to significant savings over time.
• Lastly, optimized equipment can lead to significantly longer equipment life spans, which leads to fewer unplanned equipment replacements.

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New Revenue + Sustainability Goals

• Efficiency Dividends drive sustainable, profitable action in commercial real estate (CRE) toward ESG, net zero, and decarbonization goals. By investing in energy-efficient upgrades, building owners reduce their carbon footprint, save money, and attract sustainable tenants. This creates a virtuous cycle of efficiency, incentivizing tenants to reduce energy consumption and contribute to ESG goals.
• As businesses prioritize sustainability, building owners demonstrating commitment can attract and retain tenants while generating revenue streams.
• Ultimately, Efficiency Dividends accelerate progress toward a more sustainable future.

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Green Certifications:

• In today's environmentally conscious marketplace, more tenants are looking for green buildings that prioritize sustainability. Building owners can differentiate their properties from the competition by investing in energy-efficient upgrades and obtaining green certifications like LEED or ENERGY STAR.
• Green certification tend to attract tenants willing to pay higher leases. A report on the Los Angeles market found traditional buildings earn an average of $2.16 per square foot, while tenants paid $2.91 per square foot for LEED certified space.
• Our fast payback projects can help fast-track your progress with LEED, ASHRAE-2, ASHRAE-3, and Energy Star.

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Tenant Engagement

• Building owners who regularly engage with their tenants can leverage Efficiency Dividends to foster a more collaborative building community. By providing tenants with energy data and insights, building owners can encourage behavior changes that lead to even greater energy savings.
• This engagement can create a more cohesive building community, improve tenant retention rates, and ultimately increase the property's value

Building owners can stay ahead of the curve by generating new revenue streams while demonstrating their commitment to sustainability. They're not mutually exclusive. Efficiency Dividends can help achieve both sustainability and profitability through predictable and repeatable ancillary income. If you want to explore how Efficiency Dividends can benefit your CRE portfolio, we'll show you how. Our team of experts can help you identify and implement energy-efficient upgrades that will generate maximum Efficiency Dividends and move your sustainability goals forward.

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