Rocky Mountain Institute/ by Michael Bendewald, Douglas Miller, Scott Muldavin
[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…