Commercial Real Estate Energy Efficiency &… | ENGIE Impact

Commercial Real Estate

Investors in commercial real estate (CRE) have a singular goal: increase the value of their assets. Returns on real estate investments are dependent on the proportion of net operating income relative to current market value, so significantly decreasing operating expenses can help increase rental rates and drive increases to net operating income and capitalization rates. CRE today is being redefined by new technology and changing tenant and investor expectations.

What Challenges is Commercial Real Estate Facing Today?

The three biggest challenges facing CRE today is 1) lack of visibility into resource and building data across a portfolio; 2) lack of expertise to pinpoint opportunities to reduce expenses portfolio-wide; and 3) the ability to execute projects at speed and scale to realize savings quickly.

Although CREs are aware that operational efficiencies and cost savings can be achieved through a sustainable operations plan, many of them lack specific knowledge required to develop an impactful sustainability strategy that can be deployed across their portfolio. Management of a broad portfolio of properties with legacy systems, differing billing practices across utility geographies, and inconsistent resource and building data creates immense challenges when aiming to glean insights to drive operational enhancements. Without the appropriate analytics tools and dedicated in-house expertise, CREs can be challenged to glean actionable insights from their available bill and facility data, leaving them challenged to develop well-informed strategic plans, monitor performance of initiatives, and communicate impact to investors. And while there is growing investor, real estate owner, and tenant expectations for CREs to meet sustainability goals and drive down operational costs, there exists a disconnect between tenants and CRE companies on their commitment to sustainability goals.

What Commercial Real Estate Trends Support the Sustainability Transformation?

What Should Commercial Real Estate Companies be Thinking About?

Some of the following actions can help commercial real estate companies address current trends and external pressures while maximizing savings and resource and energy efficiency.

Clients

Fedex Office grey Whole Foods grey GE Renewables grey Capital one grey Lego grey Xylem grey Wework grey Panda Express grey Wagamama grey UBS grey Canary Wharf grey Hyatt grey Cargill grey Burberry grey

$21B

in cost savings for CRE companies

125K

CRE sites managed

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