Tenants vs. Landlords- Who can benefit from energy efficiency?

December 21, 2015

 

Sustainability, energy saving and saving money is a priority interest for many organisations, yet they struggle with implementing energy saving opportunities. The reason being the shifted responsibility between tenants and landlords.

 

There are two different types of commercial offices: owner occupied and tenant occupied. Energy efficiency should be considered as an investment or business decision but whose responsibility is it to implement the energy saving recommendations?

 

On a leased building there are multiple stakeholders with different demands. Each stakeholder values energy savings differently. Landlords often value energy saving projects against the financial value of energy saving, whilst tenants find the same projects can also bring other business benefits for them

The below table lists the advantages of implementing energy saving solutions for all parties:

Improving the energy efficiency of the building is not necessarily about the profit you gain with implementing the recommendations but the profit you are not losing. Each opportunity has an additional value to the financial benefit, like climate change and improving the efficiency of the building.

 

Non-energy saving benefits like consequences of competitors’ improvements resulting change in market pricing, the prestige, regulations, comfort and productivity. These benefits have no simple payback period although we all know the return on investment.

 

Improving the energy rating of the building is beneficial for each businesses regardless if it is a leased or owned occupancy. If you would like to arrange an audit, or a survey for your building or Display Energy Certificate, to understand how you can make you building more efficient, please do not hesitate to get in touch.

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Contains public sector information licensed under the Open Government Licence v3.0.