How to Calculate and Present Deep Retrofit Value: A Guide For Investors

Rocky Mountain Institute/ by Michael Bendewald, Douglas Miller, Scott Muldavin
http://www.rmi.org/deep_retrofit_value_guide_for_investors

[RMI Outlet]  How did Sharp Development measure the success of its deep retrofit investment of a 1970s-era Class C building in Silicon Valley? Although energy efficiency was important, what mattered more was the decreased lease-up time and increased rent.

Similarly, the International Monetary Fund (IMF)measured the success of the deep retrofit of its Washington, DC, headquarters by the retrofit’s ability to reduce the risk of failing equipment, avoid a downgrade in market value, and bring the building up to code compliance. For Caisse des Dépôts et Consignations (CDC), it was the expected 10 percent asset value increase to a 1930s-era building in Paris. For Malkin Holdings, it was the avoidance of millions in planned capital costs for the Empire State Building. For Hilton, it was the increased net operating income and property value as well as improved customer experience at its Universal Studios-Los Angeles hotel. And for the Rose Smart Growth Investment Fund, it was the boost in occupancy from 68 to 96 percent at the Joseph Vance Building in downtown Seattle.

These stories corroborate strong market evidence that energy cost savings—while significant—represent just one driver motivating investment in deep energy retrofits…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s