Higher property values drives energy efficiency retrofits in commercial buildings
Research finds that higher property values for commercial buildings is the main motivation behind energy efficiency retrofits.
The market for energy efficiency retrofits in commercial buildings continues to expand. Driven by strong activity in the federal building sector, activity should continue through 2013. However, according to research by Pike Research , the largest potential for long term growth in the building efficiency market lies in the private commercial sector. Comprising more than 70 billion sq ft, the commercial building sector is motivated by several factors. Commercial building managers are motivated by an opportunity to reduce energy costs, but according to the research, the lure of high proper values remains the main motivation.
"As the economy recovers, the commercial building sector’s activity mix will
shift away from new construction and toward more renovations," says Clint Wheelock, founder and managing director, Pike Research. "In addition to the direct benefits of reducing energy bills, high-performance buildings command premium rental and sales prices. In a struggling and fiercely competitive market, green buildings simply move faster relative to their more conventional counterparts."
According to the report, "Energy Efficiency Retrofits for Commercial and Public Buildings" , commercial building retrofits range from less than $1/sq ft to $10-$30/ sq ft of energy costs and enhance occupant performance to $40/sq ft for a major renovation. The payback periods for simple, low-cost retrofits, range between a few months and a few years. The report analyzed market opportunities, drivers, barriers, and best practices within the commercial building sector. The report features analysis of the addressable market for green retrofits, along with forecasts for market growth over the next five years.