Property Manager’s Guide to Energy Efficiency
Reducing energy expenses and use is a growing concern for many property owners. Energy expenses from lighting, as well as heating, cooling, water and other sources often present clear and measurable opportunities for cost savings, but how to realize these cost savings is a more complex problem.
Which fixtures are most energy efficient? Who can upgrade energy systems and install new fixtures where needed? How much downtime will this create, and how much upfront investment will be needed? We wrote this guide to answer these questions and help you plot the most cost-effective course to energy efficiency.
You can also download the PDF version of this guide on improving your property’s energy efficiency for free!
Part 1: Complete an Evaluation of Your Property
Every building is different, as are the possible energy efficiency upgrades. Your building size, construction, existing fixtures and control system will all determine the best possible energy efficiency plan. Your energy efficiency and cost savings goals, as well as your investment budget, will also play a role. That is why we start with a comprehensive site review with an energy efficiency expert. Our expert will conduct a site review to identify the best opportunities for energy improvements, and talk with you to see how this fits into your goals.
At the site review stage, you and an energy expert can discuss:
Potential energy efficiency improvements to your lighting, heating, cooling, and water use systems
Rebates and credits you may be eligible for through utility companies, taxes, municipality, or energy efficiency product manufacturers
Benefits for your tenants, including better-quality lighting, safer and more brightly-lit exteriors, more comfortable temperatures, and lowered individual utility costs
Your budget, goals for your building, and your energy saving goals
How to solve unique challenges such as low lighting conditions, drafts, maintenance problems, safety concerns or other challenges
Benefits to your building and business, including lower energy costs, a more attractive appearance inside and out, a positive reputation and competitive advantage as an energy-conscious business
See How Your Building’s Energy Costs Compare
If you’re interested in learning more about energy improvements, schedule a free, no-pressure site review. We’ll identify areas you can save, and leave the decision-making to you.
Part 2: Assessing Your Building Energy Consumption
Finding the best opportunities for cost- and energy-savings isn’t guesswork. We look at the numbers to find where you can reduce energy expenses and how much you’ll save. We’ll do the math for you, taking a close look at your energy expenditures and comparing them against other buildings like yours to show where you’ll save the most.
By assessing energy use and cost, and projecting savings with energy-efficient LED lights, climate control systems, low-flow faucets and toilets, and other upgrades, you can see how much you’ll save with each energy efficient improvement to your building.
We’ll also take a look at your property’s Net Operating Income (NOI) and how low-cost options for maintenance and repairs, like LED lighting, can reduce operating expenses and boost NOI.
NOI = Real Estate Revenue – Operating Expenses
Net operating income is considered an accurate measure of a property’s income-producing potential. NOI figures show how much revenue a property can generate on it’s own and are less susceptible to manipulation. NOI can be increased by raising rents, increasing the cost to use on-site facilities (such as laundry and parking), or finding lower-cost options for maintenance and repairs (LED Lighting).
Malls & Commercial Office Buildings
|Total LED Project cost||($1,685,000)|
|1-Year Increase in NOI
(Maintenance & Energy Savings)
|Project ROI||1.72 Years|
|5-Year Increase in NOI
(Maintenance & Energy Savings)
|New Portfolio Value after LED Upgrades||$259,743,410|
|Improvement in Estimated Portfolio Value with LED Upgrades||$9,743,410|
For every $1000 reduction in operating expenses (Improvement in NOI), the value of the property increases $10,000.
Calculating Net Operating Income
Net operating income (NOI) is simply the annual income generated by an income-producing property after taking into account all income collected from operations, and deducting all expenses incurred from operations. The net operating income formula is as follows:
Net Operating Income Formula
Potential Rental Income
– Vacancy and Credit Losses
Effective Rental Income
+ Other Income
Gross Operating Income
– Operating Expenses
Net Operating Income
During your energy assessment, our experts will:
Identify reductions to operating costs and analyze your Net Operating Income.
Compare your costs of lighting, heating, cooling and water to buildings of similar size and use.
Identify where your best opportunities for energy savings exist and how much you can expect to save short-term and long-term.
Compare cost-savings with your investment, factoring in rebates and other credits.
Outline your ROI and payback periods based on tiered energy-efficiency plans.
Calculate Your Energy Efficiency Improvements Project ROI Yourself
Cost savings through Energy efficiency improvements are based on hard numbers. You can estimate these savings for yourself without leaving your desk using the ROI calculator.
Part 3: Reducing the Cost of Your Investment
A number of different rebates and credits are available to off-set the upfront investment costs of your energy-efficiency improvements, though many building owners are not aware of these. We will not only find all of the rebates and credits that are available to you, but we will also work with your utilities, municipality, product manufacturers and others to make sure all paperwork is filed and rebates are fulfilled. Our experts will also factor these rebates into your ROI analysis to give you the most accurate financial picture.
At this stage you’ll learn about:
Energy credits and rebates available to you from your utilities, product manufacturers, municipality, and taxes.
How these credits will offset your initial investment and improve ROI
Any steps or documents your energy expert will need to apply for and fulfill these rebates for you
What Rebates Are You Eligible For?
You may be able to offset your cost of investment more than you think. We’ve collected energy rebates and credits from a number of sources to show how you can offset your costs.
Part 4: Creating a Detailed and Organized Plan
Upgrading your lighting, climate control, or water systems can be a big job. Many building owners are concerned about taking time away from building and business management. At this step, we’ll discuss your project and create a plan that accommodates your schedule, and that of your tenants. We’ll also work with experienced contractors to obtain competitive bids for installation and retrofitting. With a detailed and organized plan, budget and a project manager to coordinate energy efficiency improvements, you can be 100% confident in your project.
During the project planning stage, we will:
Obtain competitive bids from experienced contractors
Create a project timeline that works with your schedule
Explain the next steps and what you can expect
Answer any questions or concerns you have about your energy efficiency improvements
Part 5: Executing the Energy Improvement Installation
The detailed planning and budgeting phases help to make installation easy. Our project manager will work with experienced contractors to install energy efficiency improvements specified in the project plan. We’ll track and receive energy-efficient bulbs, controls, and other fixtures, stay on top of the installation timeline, and make sure everything goes according to plan.
At this stage, you can watch your energy improvement installation, including:
LED lighting in common areas, officies, or individual rooms
LED lighting for outdoor areas
Energy-efficient climate control systems
Low-flow water fixtures
How to Start Your Project
Installing energy efficiency improvements in your buildings does not have to mean over-stretching your budget or taking time away from your business.
Working with our experts, you’ll see real projections of how much you can save, rebates you can use, and how you can start this project without the stress. We leverage our connections with energy-efficiency contractors, product suppliers and utilities to not only get your the best deal, but also ensure a stress-free project.
Work with an Energy Expert
If you’re interested in learning more about this process and how you can install energy-efficient upgrades with low upfront investment and a fast payback period, we can help.