Industrial Real Estate’s Changing Landscape Sparks BISNOW Panel Discussion
Industrial real estate investors, builders, and technology experts see energy efficiency investments driving higher ROI and lowering OPEX. Read the panel highlights here:
- Steep energy bills are a key concern for industrial building owners. In fact, the industrial sector consumes more than half of the world’s energy*
- Energy use in these assets spans process and assembly, steam and cogeneration, HVAC and lighting
- Industrial buildings typically have large, wide roof spaces ideal for reaping the benefits of rooftop solar energy
- Industrial real estate is a newly in-demand asset class, and the conversation focused on energy efficiency retrofitting in existing buildings
Given the state of the industrial real estate market, it’s easy to see why these buildings are prime candidates for Efficiency Production, Carbon Lighthouse’s process that converts energy waste into guaranteed financial value.
That’s why we attended the 2019 Bisnow National Industrial & Logistics Summit in New York City — and Louis Langlois, our VP of Solar & Energy Solutions, spoke on a panel of industrial real estate and technology experts.
The discussion touched on sustainability, innovation, automation and operations in the industrial real estate sector, driven by panelists Marc Lebovitz of Woodmont Industrial Fund; Mario Morroni of Ivanhoe Cambridge; Dan Schauble of Advantage Engineers; and Matthew Hoelzi of Margulies Hoelzi Architecture.
All agreed that building owners and tenants alike have shared incentives to maximize the financial value of their industrial properties:
- Owners want to maximize net operating income, with lower OPEX relative to competitors
- Tenants want to be sure they are getting the most value from the property for the rent they are paying, with lower triple net leases
The challenge lies in making OPEX improvements with strong ROI.
That’s why Carbon Lighthouse engineers use deep data and ongoing optimizations to unlock hidden inefficiencies within existing equipment – so we can guarantee energy savings without upfront costs or capital expenditure.
“Investments in energy efficiency and renewables are some of the best uses of capital, delivering returns that are outpacing the market,” Langlois said during the panel.
Langois advised that, although “a data-driven energy management strategy is little utilized,” it can be a key financial strategy to make industrial real estate assets more recession-proof.
“Maximizing the efficiency of the resources you consume – and energy in particular,” Langlois said, “has a direct impact on operational resiliency and business health.”
The industrial building sector still has a long way to go to fully embrace clean energy and efficiency — but the potential for profit-driven carbon elimination is high, and we’re excited to help take the industry to the next level.
*According to the U.S. Energy Information Administration