Posts Tagged: landlord

Commercial Buildings, Part II

You’ve heard about solar energy, maybe you think it’s great for some people’s houses, but have you considered what it might do to boost your revenue from your commercial building? Let’s consider for a moment what might have happened if you had Installed a solar energy system on your most recently-completed building.

For the second installment in this series, let’s look at commercial structures made for retail.

Small Storefront Retail

If your most recent building was built for small storefront retail, then your situation is probably most like that of an apartment building. While sometimes a retail structure is built and then sold to someone else to manage, in this case we’ll look at one that you have built to keep.

Like an apartment building, you’re on the hook for operations and maintenance of that structure. You get the bills for electric use in common areas and those areas that are your responsibility such as lighting and signage. Maybe you even supply your tenants with electricity. If you get any electric bills at all, you know that over the long term that cost is unpredictable. The utility can raise your rates or change your billing structure without much warning, and you only get to react to it.

A solar electric system that offsets those bills will allow you to be proactive in controlling those costs. Plus, in the long term once your savings has recouped the initial cost of the system, your operating costs are that much lower because the fuel that powers that system is free. If you’re planning to keep your building for more than a few years, you will get to the point where it will be paying you.

You also have another option for recouping the initial cost of a solar electric system. You can sell the power you generate from your system to your tenants. In effect, you can be their electric utility – at least in part – giving you an entirely new revenue stream that you could not have had by any other means.

Large Retail

If your most recent building was built for a large retail establishment, then you will be especially interested in attracting and keeping tenants. Obviously, solar can do nothing for the building’s location, traffic pattern, or nearby homes or businesses. But many large corporations these days are looking for ways to be “green.” The presence of a solar array on your building can contribute to these companies’ green marketing effort, and such a building’s offering may be an attractive differentiator to them over a competing location. Companies may choose your building simply because it has a solar array on it. And they would be willing to pay a premium to get it.

Solar energy can be a cost-effective amenity to help keep your building occupied, at a dollar amount that can be recovered (usually with margin to spare) in the lease.

In the same manner as the small retail scenario, you have another option for recouping the initial cost of a solar electric system. You can sell the power you generate from your system to your tenant(s). In effect, you can be their electric utility – at least in part – giving you an entirely new revenue stream that you could not have had by any other means.

End of Part Two

We’re just getting started! Stay tuned for more….

Links

http://www.greentechmedia.com/articles/read/nearly-40-of-us-electricity-could-come-from-rooftop-solar

http://www.greentechmedia.com/articles/read/Apple-Now-Operates-on-93-Renewable-Energy-Worldwide

http://www.greentechmedia.com/research/subscription/pv-pulse

http://www.sustainablecitynetwork.com/topic_channels/energy/article_a69b138a-005b-11e6-9618-3fc427da5fb8.html?utm_source=SCN+InBox+e-Newsletter&utm_campaign=b146985471-SCNNewsletter_Vendors&utm_medium=email&utm_term=0_11e7ac761c-b146985471-188903137&mc_cid=b146985471&mc_eid=68f1b6af48

 

Commercial Buildings, Part I

You’ve heard about solar energy, maybe you think it’s great for some people’s houses, but have you considered what it might do to boost your revenue from your commercial building? Let’s consider for a moment what might have happened if you had Installed a solar energy system on your most recently-completed building.

For the first in this series, let’s look at commercial structures made for living.

Apartments

If your most recent building was built for apartments, then you’re on the hook for operations and maintenance of that structure for as long as you choose to keep it. You get the bills for the plumber, the painter, the handyman, the electrician, and the ones who fix broken walls and trim. You also get the bills for electric use in the common areas. Maybe you even supply your tenants with electricity or water or gas. If you get any electric bills at all, you know that over the long term that cost is unpredictable. The utility can raise your rates or change your billing structure without much warning, and you only get to react to it.

A solar electric system that offsets those bills will allow you to be proactive in controlling those costs. Plus, in the long term once your savings has recouped the initial cost of the system, your operating costs are that much lower because the fuel that powers that system is free. If you’re planning to keep your building for more than a few years, you will get to the point where it will be paying you.

Condominiums

If your most recent building was built for condos, then your outlook may be fairly short-term. While some may be interested in continuing to hold the building for the long term, most do not. If you like to hold your condo structures long-term, then see the section above on “Apartments,” because that probably applies more to your situation. If your goal is to get the structure occupied, have the HOA take over, and then move on, then this section is for you.

What will make you most successful? Certainly, a fully-occupied condo structure. What will encourage that? It must be an attractive property. Obviously, solar can do nothing for the location of the structure, nor for its configuration, interior, amenities, etc. But solar can be attractive to many people. Studies have shown that as people’s personal wealth increases, so does their concern for the environment. A condo that comes with solar pre-installed can be a market differentiator for those people, and can attract them to your structure over a competing complex. Solar energy can be a cost-effective amenity to help sell condo units, at a dollar amount that can be quickly recovered (usually with margin to spare) in the price of the unit.

End of Part One

We haven’t even touched on non-residential buildings yet. There’s a whole world of commercial structures out there, and future installments to this blog should attempt to address these other structures. We’ll talk about solar on buildings made for small storefront retail, large retail, food service, hotel/motel, office space, manufacturing, and specialty structures like churches, convention centers, and other venues that are open to the public. Stay tuned…..

Links

http://www.greentechmedia.com/articles/read/solarcity-launches-solar-for-affordable-housing

http://www.greentechmedia.com/articles/read/ChargePoint-Launches-An-EV-Charging-Product-Tailored-for-Apartments-and-Con

https://solarpowerrocks.com/solar-trends/solar-for-renters-does-it-work/