The number one goal of an asset manager is to optimize returns on its real estate investments. Tenant relations, positioning of the property, and supervision of leasing and property management are all critically important aspects of the job. Over the past few years, energy management has become an equally important responsibility having an effect on all aspects of asset management.
Energy Costs, Energy Income
All else equal, to increase property value you need to reduce energy costs through the permanent reduction of energy consumption and/or through strategic energy procurement/risk management. EnergyWatch is trusted by the largest firms in the commercial and corporate real estate industry to measure and verify consumption reductions from efficiency projects and procure energy across their portfolios. By leveraging the size of your load and our relationships with the most reputable suppliers in the industry, EnergyWatch secures pricing that meets your business goals and objectives. Often overlooked, the other side of the ledger, energy income, is equally important in property valuation. With the partners over 40 years experience in real estate management and operations, EnergyWatch understands the dynamics of utility clauses in leases and how a portfolio can increase tenant recoverables and generate income from assets. Whether it’s the evaluation of battery storage opportunities, demand response, on-site generation and stand-by rates, rent inclusion escalations, or overtime HVAC billing, EnergyWatch can help you maximize energy income for your assets.
Green Buildings, Sustainability, and Property Valuation
Equally important to property valuation is your building’s sustainability plan. According to the Appraisal Institute, “With green on the shopping list of the best firms, trophy office buildings in leading US markets are chasing the best rents by making green investments increasingly common”. 43% of the Fortune 500 companies have set targets in one of three categories: (1) GHG reduction commitments, (2) energy efficiency, (3) renewable energy. It’s clear that tenants are demanding that buildings have a sustainability plan in place. Aside from the obvious environmental benefits, green buildings increase occupancy rates, increase rental rates, decrease energy costs, hedge rate volatility, increase the likelihood of tenant renewal (which leads to less TI and lower brokerage fees), and ultimately leads to higher building valuations.
Don’t hire EnergyWatch if…
- You’re uninterested in gaining a strategic advantage over your competitors.
- You’d rather spend your time compiling utility data from disparate sources (such as PDFs, paper invoices, spreadsheets, text files, and multiple vendors/consultants), normalizing and formatting the information, analyzing the data, interpreting the results, and distributing to the rest of your team. (sounds like a fun use of 8 hours)
- You’re willing to accept stagnant or declining property valuations for your portfolio while EnergyWatch’s clients are routinely increasing value through our comprehensive energy management plan.
On the other hand, if you’re looking for a strategic advisor, partner, and resource for all energy related concerns and how they affect what’s most important to you, then we’re the team for you. Whether the goal is LEED certification, an Energy Star label, GRESB reporting, simply complying with local reporting regulations, or achieving any of the benefits mentioned above, EnergyWatch can help you deliver value to your organization.