Efficiency and resiliency continue to be an active part of the CRE conversation. Building owners see the value of renovations — making the building more energy efficient, water efficient, and resilient to extreme weather events. An efficient building, in addition to being more cost-effective to run, is more appealing to tenants.
Local and state initiatives are leading the charge to improve the built environment and protect real estate investments while they address climate change concerns. These are in the form of Building Performance Standards (BPS) – regulations limiting carbon emission reductions in the existing building stock. Most of these standards come with a 2030 due date.
C-PACE is a financial tool well-suited for this: low-cost financing for building improvements that address energy efficiency, water conservation, and resiliency enhancements. C-PACE financing solutions from PACE Equity Finance come with market-leading rates and can be used for new construction, renovations, and recapitalizations. If you are building to code, you are eligible for C-PACE and its flexible structures and aggressively low rates. C-PACE also has the added benefit of being non-recourse and designed to be part of a capital stack with a senior loan as well as a variety of funding sources (like TIF, HTC, NMTC, etc.). C-PACE typically funds up to 30% of a new construction project and 100% of a renovation project.
Office building owners use beautiful and efficient spaces to entice tenants (who in turn use the spaces to recruit strong talent).
Apartment building owners promote energy efficiency to appeal to tenants searching for better indoor air quality and lower utility costs.
