What are the most common energy efficiency issues in commercial real estate?

1 Inadequate insulation

One of the main sources of energy loss in commercial buildings is inadequate insulation, especially in older structures that were not designed with modern standards and codes. Poor insulation can result in heat transfer through the walls, roof, windows, and doors, leading to higher heating and cooling costs and lower comfort levels. To improve insulation, commercial property owners can conduct an energy audit to identify the areas of greatest heat loss and invest in retrofitting or upgrading the insulation materials and methods.

2 Outdated HVAC systems

Another common energy efficiency issue in commercial real estate is outdated heating, ventilation, and air conditioning (HVAC) systems that consume a large amount of energy and often operate inefficiently. Outdated HVAC systems can have low performance, high maintenance costs, frequent breakdowns, and poor indoor air quality. To upgrade HVAC systems, commercial property owners can consider replacing old equipment with more energy-efficient models, installing smart thermostats and sensors, implementing regular maintenance and tune-ups, and optimizing the airflow and distribution.

3 Inefficient lighting

Lighting is one of the easiest and most cost-effective ways to improve energy efficiency in commercial real estate, yet many buildings still use inefficient lighting fixtures and bulbs that waste energy and money. Inefficient lighting can also affect the productivity and well-being of the occupants, as well as the aesthetics and appeal of the space. To enhance lighting efficiency, commercial property owners can switch to LED or CFL bulbs, install dimmers and timers, use natural light whenever possible, and educate the tenants on how to reduce unnecessary lighting use.

4 Lack of energy management

A lack of energy management is a major obstacle to achieving energy efficiency in commercial real estate, as many property owners and tenants do not have a clear picture of their energy consumption patterns and opportunities for improvement. Without proper energy management, it is difficult to set goals, monitor progress, and evaluate results. To implement energy management, commercial property owners can use energy management software or systems that collect and analyze data on energy use, identify areas of improvement, and provide recommendations and feedback.

5 Tenant behavior

Finally, tenant behavior is a key factor that influences energy efficiency in commercial real estate, as tenants are the ones who use the energy services and appliances in the building. Tenant behavior can vary widely depending on the type, size, and culture of the business, as well as the level of awareness and engagement of the employees. To influence tenant behavior, commercial property owners can communicate the benefits of energy efficiency, provide incentives and recognition, create a green lease agreement, and involve tenants in energy efficiency initiatives.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?