Mandatory benchmarks are impacting sales and leases, know your number and take steps now to set your building apart.
California’s required building benchmarking ordinance (AB1103) can be seen as cumbersome and intrusive to a real estate transaction but when a benchmark is viewed as a valuable tool, it can be the used to enhance marketing appeal, illuminate energy savings, and increase a building’s value. The U.S. EPA found an average energy savings of 2.4 percent per year in buildings that consistently benchmark their energy use.*
Benchmarking uses Energy Star’s Portfolio Manager Software to compare your building’s energy usage to similar buildings and generates a benchmark score. This score is a good but basic indication of how your building is doing compared to others. This information can be very empowering to property/facility managers as a snapshot of the energy use effectiveness and then open discussions for savings opportunities. When benchmarks are adopted as a regularly used tool, very effective information can be created. Information like; knowing the “score” before and after any energy project to determine effectiveness, showcasing ongoing energy efficiency to a prospective buyer or tenant, or demonstrating increased building value by reducing operating costs. For instance, a 100,000-square-foot building that reduces its energy costs by 10 percent, say from $2.00 per square foot to $1.80 per square foot, increases its net operating income by $20,000 and building value at an 8 percent cap rate by $250,000.
To make benchmarking easier, COAC can step you through the process. We have benchmarked dozens of buildings in this region and can easily navigate the convoluted process for you. Whether your need is immediate, for a closing transaction, or a longer term program of benchmarking to identity savings opportunities or validate energy saving projects, COAC Energy Services can take care of it for you. Our website has an easy way to get the benchmark process started or you can email Bill Schmalzel directly to get started.