Energy efficiency drives sustainability investments despite economic downturn
According to the recently published RICS-CPE Global Commercial Property Sustainability Survey, despite a global economic downturn, real estate owners are increasing their investments in sustainability. Cutting energy costs was cited as the primary driver for these investments.
“The most important sustainability issue for clients is energy efficiency,” Simon Rubinsohn, RICS chief economist, told CPE. “More people are more focused on sustainability since the economic crisis, and energy has become the main driver; it has to do with the bottom line.”
It makes a lot of sense when you think about it. We continue to see buildings that consistently could cut 15% off their energy utility bills just by implementing low cost/no cost energy conservation measures. With ROIs of less than 6 months its kind of a no-brainer for owners. Considering energy spending, on average, constitutes approximately 35% of building operating costs, this is significant.
From a sustainability stand point, not only are they able to cut energy consumption, but they are also able to reduce their carbon footprint. With a climate bill winding its way through the Senate, many believe substantial financial incentives for carbon reduction in commercial buildings could make energy conservation even more financially appealing.
BOMA has been attempting to educate owners regarding these opportunities and it looks these ideas are being adopted. When I talk with owners and managers most of them get it. Often the main question is how to go about uncovering these opportunities in a cost effective manner. Many of them just don’t know where to start. I will outline how we’re suggesting owners proceed in a separate post.
In the meantime, its nice to see that sustainability is seen as a strategic initiative for most owners based on its ability to lower operating costs. It’s not just good for the planet, it’s good for the bottom line.
View the article at Commercial Property News here.
Tags: BOMA, energy efficiency, Sustainability