Download New Guide for Investors

Monday 04th May 2015

The Rocky Mountain Institute has released How to Calculate and Present Deep Retrofit Value: A Guide For Investors, a comprehensive resource to support real estate investors in evaluating opportunities for deep energy retrofits to accelerate and scale investment.

Energy cost savings — while significant — only represent part of the value proposition for deep retrofits. Key value elements, or sources of value beyond energy cost savings, include:

  • Retrofit Capital Costs — Retrofit projects can have little cost premium if timed with other capital improvement projects and if they take advantage of subsidies and other financial incentives.
  • Non-energy Operating Costs — Deep retrofits can reduce operating costs associated with maintenance costs, insurance costs, and occupant churn rate as well as increase a building’s occupied space through equipment downsizing and improved occupant use of space.
  • Tenant Revenues — Retrofits can enhance demand, resulting in increasing rents, occupancies, absorption, and tenant retention.
  • Sales Revenues — Sales revenue premiums from deep retrofits result from higher net operating income, increased investor demand, and risk reduction.
  • Retrofit Risk Analysis — The thorough identification and evaluation of risks enables action to mitigate and accurately price them, helping to maximize value from the other value elements.

The practice guide shows real estate investors how to incorporate these value elements into decision making and how to prepare a comprehensive deep retrofit value report to be presented as part of a retrofit capital request.

Download the guide to consider the potential implications for your own company. The executive summary and full guide are available here: www.rmi.org/deep_retrofit_value_guide_for_investors.

The Rocky Mountain Institute has released How to Calculate and Present Deep Retrofit Value: A Guide For Investors, a comprehensive resource to support real estate investors in evaluating opportunities for deep energy retrofits to accelerate and scale investment.

Energy cost savings — while significant — only represent part of the value proposition for deep retrofits. Key value elements, or sources of value beyond energy cost savings, include:

  • Retrofit Capital Costs — Retrofit projects can have little cost premium if timed with other capital improvement projects and if they take advantage of subsidies and other financial incentives.
  • Non-energy Operating Costs — Deep retrofits can reduce operating costs associated with maintenance costs, insurance costs, and occupant churn rate as well as increase a building’s occupied space through equipment downsizing and improved occupant use of space.
  • Tenant Revenues — Retrofits can enhance demand, resulting in increasing rents, occupancies, absorption, and tenant retention.
  • Sales Revenues — Sales revenue premiums from deep retrofits result from higher net operating income, increased investor demand, and risk reduction.
  • Retrofit Risk Analysis — The thorough identification and evaluation of risks enables action to mitigate and accurately price them, helping to maximize value from the other value elements.

The practice guide shows real estate investors how to incorporate these value elements into decision making and how to prepare a comprehensive deep retrofit value report to be presented as part of a retrofit capital request.

Download the guide to consider the potential implications for your own company. The executive summary and full guide are available here: www.rmi.org/deep_retrofit_value_guide_for_investors.