Building Performance That Pays: Insights from the First IREM® Energy Efficiency SurveyJanuary 10, 2017
| Todd Feist
IREM has released a report titled Building Performance That Pays: Insights from the First IREM® Energy Efficiency Survey in collaboration with the Institute for Market Transformation (IMT). The report and survey were made possible by a Yardi Energy Efficiency Grant.
IREM sent the survey to its membership in spring 2016. BOMA International also sent the survey to its membership. The intent of the survey is to gain insights on building energy efficiency practices and perceptions among investment real estate professionals, including property managers.
The report, based on survey responses and interviews with experts in the industry, focuses on survey questions related to the financial analysis of building energy efficiency. Topics explored in the report include:
- The importance of building energy efficiency
- Property managers and energy efficiency, including who has ultimate responsibility for building performance
- Acceptable payback periods for energy efficiency investments among owners and third-party service companies
- Financial analysis methods used to assess energy efficiency investments
- Barriers to building energy efficiency such as focus on short paybacks and the landlord-tenant split incentive*
- Financing of energy efficiency investments
- Success stories
Download the free report
In the weeks ahead, we will share additional survey results on the IREM Blog, exploring other topics related to energy efficiency in commercial and multifamily properties.
For additional information on improving the energy efficiency of your properties, visit www.irem.org/gogreen to learn about the IREM® Certified Sustainable Property certification.
* The landlord-tenant split incentive occurs when neither party is motivated to improve building energy efficiency because the other party sees the financial benefits, due to energy metering infrastructure and standard lease practices. For example, when tenants receive and pay their own utility bills, owners are reluctant to make investments that will primarily benefit those tenants. Conversely, when a building is master-metered, and the owner pays the utility bills, tenants are not motivated to adopt behaviors conducive to good energy performance.
About the Author
Todd Feist is the Sustainability Program Manager at IREM Headquarters in Chicago. He develops classroom and online courses and helps manage the IREM Sustainability program, including the IREM Certified Sustainable Property certification.