3 reasons why not monitoring energy in buildings is a major opportunity cost

In commercial real estate, opportunity costs represent the missed benefits when real estate owners choose one investment decision over another. These lost opportunities can have a major influence on the value of assets, influencing rent yields, energy (and cost) savings, brand equity and more. Asset managers or sustainability managers that reconsider these costs can get more value from their buildings and achieve better long-term results. 

Incorporating energy monitoring into your infrastructure will open a vast range of such opportunities that you simply don’t want to miss. So, what are some of the potential benefits? In this article, I outline 3 reasons why you shouldn’t overlook the power of energy management systems.

1) Bringing in the green!

There is no doubt that tenants are increasingly demanding more sustainable spaces; with that demand comes an increasing willingness to pay. A 2014 study from the United Nations Environment Programme indicates that LEED-certified buildings (as well as other labels) produce 8% higher effective rents and a 13% sales price premium compared to non-certified buildings. Furthermore, MSISI’s research shows that 84% of millennials are interested in sustainable investing and are twice as likely to invest if there is sustainability within the given value proposition. How do you communicate your impact to both potential clients and investors? By equipping your property with an energy management system like hello energy, you can score unique credits on labels like GRESB, BREEAM and more – therefore communicating your impact to all stakeholders, loud and clear – and not fall behind the competition.

2) Capitalising on energy savings

The benefits don’t stop there. Monitoring your building’s energy consumption additionally provides sustainability managers with greater access into the cost per unit of energy. Unlocking this data can help your organisation reduce operational costs as well as utilise rebates in order to improve ROI on energy equipment and procurement. In fact, according to Carbon Trust, typically 20% of all business’ yearly energy costs are wasted due to inefficient equipment. By keeping a close eye on energy trends on a granular level, managers can identify best practices to minimise their assets’ impact and react more effectively when consumption spikes do occur. Cutting costs by lowering your building’s energy usage will help free up your budget further for other value-adding property upgrades.

3) Maximising your brand value

Your brand is another major asset that benefits from having an energy management system. Not only does boasting your building’s digital infrastructure with certifications like Wiredscore attract clients with bigger ambitions (and pockets); it can also be used as a communication tool to educate your building’s inhabitants and employees about sustainability. This helps energy managers to raise energy awareness and thus execute on carbon reduction programs, while aligning all stakeholders to achieve your corporate sustainability targets even faster. With the market’s hard shift towards sustainability, you want all eyes on you, and not on the landlord next door. 

Don’t kick yourself for losing out on the opportunity to become an industry leader in ESG! Want more information about how hello energy can benefit your triple bottom line? Reach out via our contact form.

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