Energy efficiency is becoming a more meaningful factor in commercial real estate underwriting as rising power costs, tighter regulations and aging building systems increase the financial consequences of poor building performance.
While energy costs alone are not reshaping investor sentiment, they are becoming part of a broader set of pressures that are forcing owners and investors to look more closely at how efficiently buildings operate, according to Josephine Tucker, Americas head of energy advisory and sustainability at JLL, in an IREI interview.
“Energy costs, alongside tightening local regulations and aging building systems, are converging to reframe efficiency as a critical operating issue and a fundamental resilience play for real estate,” Tucker said.
Historically, energy-efficiency investments often struggled to compete with other capital needs because the financial returns were viewed as relatively modest and slow to materialize. That calculation i
