As manager of an important REIT, you are committed to sustainability and optimizing the efficiency of your assets. You have set a goal to reduce your energy consumption by 30% over your baseline and you have seen much success to date by doing the low hanging fruit. 

However, you still need another 10% savings to meet your goal and your property managers are telling you that to make further progress in their buildings will take capital investment to effectively increase their efficiency. For next year you have been given a $15M budget to allocate for capital improvements in the portfolio. Your property managers have given you their essential capital budgets and the must do items total $25M (roof repairs and replacements, parking lot repairs, HVAC replacements, etc).

How will you fund energy retrofits?

Misc. Information

The portfolio of buildings is rated in ENERGY STAR Portfolio Manager from 1 to 100 (Targeted range of highest efficiency is 75 to 100)

The Property Managers are financially incentivized to meet their goals?

Desired payback for typical energy conservation measures is 2-4 years?

Answer rating: 100% (QA)

As a manager committed to sustainability and optimizing the efficiency of your assets you need to find a way to fund energy retrofits to meet your goa... View the full answer