Why Top Real Estate Companies Release Annual Sustainability Reports May 21, 2015 | Samantha Dubrow

Many top real estate companies issue annual reports on their energy consumption and sustainability efforts.

They have found that energy efficiency practices help them:

 

  • Save money
  • Satisfy tenants
  • Bring in new business
  • Become trusted industry leaders, and
  • Help the environment

 

Let’s take a look at two industry leaders and how they report their energy data.

Vornado

Vornado is one of the largest commercial real estate owners on the east coast, with over 31 million square feet of LEED Certified properties and 25 million square feet of Energy Star certified properties. Vornado has a capital program in place dedicated to energy efficiency, and every year, they release a sustainability report on their efforts and improvements. In the report, Vornado notes:
 

“The capital program provides the necessary resources to equip our buildings with best-in-class energy infrastructure and technology that helps attract and retain tenants while lowering our operating costs.”

 

More than half of the energy consumed in commercial buildings is used by tenants so it is extremely important to involve them in sustainability efforts. Vornado has done just this by giving their tenants access to their energy data.
 

 

JBG

Like Vornado, JBG releases an annual sustainability report. This year, JBG reported that 62% of its buildings invested in energy efficiency projects, many of which resulted in Energy Star and LEED certifications. 21.9% of their properties are Energy Star Certified, and 12% are LEED Certified. In the report, JBG notes:
 

“Being a leader in sustainability attracts new opportunities and improves tenant satisfaction and retention. In addition, the investment sales markets have also ascribed value premiums for higher levels of LEED certified commercial office and hospitality properties. Paying attention to sustainability is smart building.”

JBG also focuses attention on tenant engagement with JBG Green where they communicate ongoing sustainability efforts to the public.

 
Top real estate owners have found that reporting energy and sustainability efforts enhances their reputation, and helps them raise their bottom line. Tenants are more likely to remain loyal to companies that demonstrate their sustainability efforts, and are often willing to pay more for green leases.
 
What other methods do you use to communicate sustainability efforts to your tenants? What would you like to show them? Let us know in the comments below or send an email to energybeat@aquicore.com!
 
References:
http://resources.vnony.com/main/pdf/vornado_sustainability_report_2014.pdf?z=2015-05-12-2
http://www.vnony.com/sustainability/eip
http://www.jbg.com/cms/data/File/Commitment_Links_Item_1_PDF/Download.pdf

About The Author

When Samantha isn’t writing for the blog or managing our HR like a champ, she studies Organizational Psychology at George Washington University.