“It’s the economy, stupid.” Sound familiar? Your building’s a mini-economy. The greater your net operating income and building value, the happier you are. After all, buildings are actually strategic assets to be leveraged, not cost centers to be managed. That’s why building performance matters.
Building performance directly affects profitability. Better efficiency means lower operational costs—and greater asset values—and is the ideal hedge against energy volatility. Furthermore, certified green buildings have been linked with higher productivity (an important consideration, since people costs are 90 percent of your buildings’ money flow). So, from a pure business point of view, investments in building-energy performance make economic sense.
The challenge is deciding where, when and what to invest in to achieve the optimal financial return. Smart investment decisions consider everything that is possible for a specific building, prioritized by ownership’s economic goals, energy performance goals, available budget and local conditions such as occupancy mix, lease expirations, market positioning and asset strategy.
These decisions are often driven by economics alone, but there is more to consider these days.
Hank Paulson, former Treasury Secretary, said, “Economic growth and environmental protection are not at odds. They’re opposite sides of the same coin if you’re looking at long-term prosperity.”
We agree. But we would add that environmental protection is key to short term prosperity, too, as far as a building owner is concerned.
It turns out that in addition to economic returns, improved building performance also benefits both the internal and the external environments. A building operating as it should creates a better, more pleasant environment for the occupants (a strong selling point). It also means lesser impact on support services like electricity and water, and a reduced environmental footprint.
Bridging the economic and the environmental, our groundbreaking software and broad professional expertise can determine the optimal mix of investment; prioritize or reprioritize investment goals as you wish; generate a complete specification for RFPs; help you make sure the work is done correctly and to spec; and maintain operational efficiency over the long haul.
Like yours, our goals are optimal economic and environmental performance, resulting in maximum value appreciation for your building over the course of time that you own it. We are the means help you make that happen.