Sharpening Your Building’s Competitive Edge With C-PACE 

The value of sustainable buildings is well documented, with rental premiums of 6% and sales premiums of 7.6% across commercial properties. Companies are willing to pay more for energy-efficient buildings if they expect those upgrades will translate to lower operating costs. 

The problem today is that finding those types of properties has become increasingly difficult. Demand for sustainable buildings in the U.S. is set to outpace supply by 75% across major U.S. markets by 2030, which equates to a projected shortage of roughly 57 million square feet in the next few years, per JLL research. 

Much of this is due to the growing number of corporations reassessing their portfolios to ensure they can meet net-zero emissions targets and other sustainability benchmarks. JLL expects three out of every four lease requirements among the top 100 office occupiers in major U.S. markets will be tied to a carbon commitment between now and 2030. 

Sustainability is rapidly becoming a significant factor impacting the value of commercial properties, and those who don’t adjust will likely be left behind. Thankfully, Property Assessed Clean Energy is a relatively untapped solution that allows developers to access long-term debt to pay for building upgrades that save energy and water. The debt can be used to finance a new build or to retrofit aging properties. 

Landlords who invest in sustainable upgrades can position themselves to compete for tenancy while also ensuring the longevity of their buildings. Well-designed C-PACE projects often realize energy savings that exceed the C-PACE payments, creating a cash-flow-positive project. 

If you’re interested in learning more about how to sharpen your building’s competitive edge, give Lone Star PACE a call at 214-256-3209 or shoot us an email at info@lonestarpace.com.