Owners, investors, tenants and government bodies all want to reduce energy usage and greenhouse gases associated with buildings. A properly conducted retrofit can achieve those goals and pay for itself through energy cost savings in less time than the average lease term. So, why are retrofits the rare exception rather than the rule? And more importantly, how can we collectively overcome the obstacles?
Those are the questions I’ll explore at ULI’s “Green Retrofit Financial Strategies” session Friday morning with executives from JPMorgan, PNC Bank, KeyBanc and Greenprint Foundation. These organizations are leaders in addressing the issues around retrofit financing, and these executives know from experience that forward progress is possible.
The challenges include a difficult market for accessing any kind of financing; underwriting standards developed before energy became a factor in residual value; and split financial incentives between tenants and owners. Are there solutions? I’m convinced that there are, and these executives are on the right track to reaching them. We’ll make plenty of time for audience participation, so if you have any ideas to exchange or questions, please challenge us.
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