ENERGY STAR Ratings
While commercial building owners generally have control over building systems and operations, tenants play a critical role in achieving lasting reductions in energy intensity.
Commercial buildings account for 20% of energy used in the United States economy, with leased spaces representing approximately 50% of all commercial building energy use. Increasingly, market pressures such as rising energy costs, new requirements to publicly disclose energy usage, and increased attention on energy efficiency as a means to combat climate change are motivating tenants, building owners, and other commercial building stakeholders to explore new ways to reduce energy consumption.
Energy Efficiency Pays
Many businesses recognize the ways in which energy efficiency can improve their bottom line. Apollo Energies helps them recognize the opportunities to see the benefits, including the role of energy efficiency in reducing total cost of occupancy, making spaces more comfortable and attractive, contributing to improved worker performance, and increasing asset value at time of sale. Even in lease structures with a split incentive for energy efficiency, building owners can benefit from increased energy efficiency through market differentiation, and in certain markets command higher rents and longer tenures. A growing body of research has shown that energy efficient buildings rent for an average premium of 2-6%, can sell for a premium of as much as 16%, attract high-quality tenants, and have lower default rates for commercial mortgages.
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