3 Reasons Building Tenants Want Their Space Submetered

If your tenants haven’t asked you to submeter their space already, they may soon. Submetering helps tenants to ensure that their leasing structure is fair, to see the return on investment yielded by their energy-saving projects, and to identify themselves as sustainability leaders.

And as all of your energy goals – whether they are to save money, increase your Energy Star Score, or gain a competitive advantage over other buildings – depend on your tenants’ engagement, submetering your tenant spaces should actually align with your goals.

Here are the 3 reasons why your tenants want their space submetered:


1. Your building tenants want their triple net leases to be fair

Triple net leasing can be done in a few ways. Either tenants can pay for the proportion of their space by square foot, or their space can be submetered, allowing you to bill them for their exact consumption. The latter is fair and controllable, and therefore engaging.

To engage your tenants even more, let them see the real-time data for their space. By seeing how their behavioral changes affect their utility bills, they will be able to learn from their mistakes and act on them immediately, motivating them to reduce their plug load and heat when they are not in the office during the weekend.


2. Your building tenants want to see the return on their investments

If your tenants are going to make the investment to replace the lights in their space or implement other energy conservation measures (ECMs), they will want to track their progress over time and see the direct payback of their actions.

Submetering their space will motivate them to make these investments, making your building more sustainable and your equipment last longer.

More and more, tenants negotiate submetering as part of their lease. This is the case for Baumann Consulting’s office in Washington, DC. Baumann is an engineering consulting firm that aims to reduce their energy consumption and better understand how their buildings operate.


“What we like about having our space submetered is the interest it raises within our team, and the internal bets we have between ourselves to discuss which ECMs will have the biggest impact – and the results often surprise us.”
-Kelly Adighije, Baumann Consulting


Knowledge will empower your tenants to continue to implement ECMs, and it will make them appreciate you as an owner, causing them to extend their leases and recommend you highly.


3. Your building tenants want to be sustainability leaders

Companies, especially younger ones, care about their carbon footprints, and they are interested in identifying themselves as sustainability leaders. People want to work for and buy from companies that have sustainable interests and practices.

If your tenants want to distinguish their brand, be seen as industry leaders, or be part of the sustainability community, they will greatly appreciate submeters included in their leases.

Chances are, your goals for your building are similar to your tenants’ goals for their spaces. You both want to save money, be recognized as sustainable companies, engage stakeholders in your goals, and have transparent access to your energy consumption. Submetering is something your tenants are going to want, and you should want it for them!

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