Environmentally Friendly Commercial Property is "In"

Just a decade ago, landlords were cutting edge if they were green by installing energy efficient appliances. Today, green energy in multi-tenant buildings is a reality, with state and federal incentives designed to make green energy economically viable for multifamily and multitenant operators. With long-term savings on energy costs and maintenance, plus increased revenue from higher occupancy rates, green energy can really mean green to you.

Tenants Demand Green Energy

In our environmentally aware culture, tenants are sharply aware of green energy. They know the impact of fossil fuels on the environment and look to reduce the demand on foreign oil. Whether tenants personally support green energy, wish to use green energy for public relations reasons or simply to be politically correct, the demand is real.

Fortunately, going green is no longer an expensive proposition. With aggressive tax credits, incentives, accelerated depreciation under the tax code and real savings on energy costs, you can recoup the cost of going green in just two to three years.

Succeed in a Difficult Real Estate Environment

Few commercial buildings and multi-tenant apartment buildings offer green energy options and savings. While some may offer Energy Star appliances, tenants expect no less. Whether environmentally aware or not, tenants want to cut their energy costs and Energy Star appliances are an obvious choice. To distinguish your properties, realize higher occupancy rates and command a higher price, you need to go beyond energy awareness, offering true green energy opportunities.

The reality is that in recession, it is a tenant's market. Prospective tenants have more options than just five years ago, with high vacancy rates and significant pricing pressure on owners, building managers and operators. Energy costs continue to rise, further cutting into your profits.

By offering true green energy in your buildings, you can succeed here others fail, attracting more tenants with reasonable rents and lower utility costs, thanks to tremendous government subsidies and tax incentives.

Cost Savings from Solar Heating, Solar Electric and Wind Power

Landlords can reduce their monthly energy costs by employing energy technologies including solar heating tubes, solar electric and wind energy. Solar heating tubes, relatively unknown by most consumers, boast four times the efficiency of solar electricity. Solar heating tubes convert solar energy into heat, used to heat buildings and hot water. In normal daylight conditions - even in the winter months - temperatures in the heating tubes' conductive fluids reach 190 degrees, significantly reducing your heating related expenses.

Solar electricity reduces your demand from the power grid by supplementing (or replacing) your electrical demand with electricity produced directly from sunlight. Excess electricity feeds back into the power grid and the utilities will pay you for surplus electricity you produce.

Wind power offers a new opportunity to produce electricity 24/7, reducing your buildings' electrical demand and generating surplus electric which can be repurchased by your utility company.

Interestingly, commercial operators will produce electricity year round, even when their tenants are closed (holidays, weekends) producing even greater amounts or surplus electricity that can be resold to the utilities.

Take Advantage of Current Incentives Before they Expire

As with anything in Washington, regulations change. Currently the government is offering 30% tax credits against the price of your system plus accelerated depreciation. Bundle in state and local incentives, and most building owners will recoup their investment in just two to three years and will then realize tremendous savings for years to come.