Commercial Lease Spaces Need Energy Audits, Too

 

Of course, energy conservation isn't only important in home and residential applications. Owners of commercial buildings are becoming increasingly aware that they must have concerns for energy conservation requirements, too.

 

Aside from meeting energy efficiency criteria for the good of the planet, property owners have to be concerned with tenant lease up. Renters are becoming smarter about where they lease retail space, searching for places that save them money on utility costs.

 

 

It is an excellent time to upgrade commercial buildings to receive tax deductions and improve the quality of the rental property. These deductions can total up to $1.80 per square foot when modifications can save 50% or more of the pre-renovation energy usage. Items to be addressed include interior lighting, water heating, cooling, ventilation, and heating.

 

Deductions are based on three areas of improvement that can be combined or addressed individually. A $0.60 deduction per square foot will be given for partial improvements to the lighting, building envelope, or heating and cooling system. Insulation improvements as well as caulking and sealing air leaks amounts to a 10% deduction. The heating and cooling system upgrades garner 20%, and lighting improvements account for 20%.

 

This program is in effect until the end of 2013, so there is ample time to save while improving the desirability of commercial spaces. Depending on your location, there may be other incentives offered by the utility providers or the state you live in. The gas company may pay you for installing gas related products such as a furnace, water heater, or tankless water heater.

 

The first step is to get an energy audit from a reputable firm, which will determine if improvements are possible to meet the requirements and to find out if there are other concerns that require further investigation.

 

Upgrading may not be a sensible option if there is not any meaningful change to the energy consumption or the overall improvement of the building. You will never know where you stand if you don't have professionals supply an energy rating. Be sure to employ a company that studies the whole picture, not just certain phases.

 

Improved relations with tenants, obtaining tax incentives, saving on utility costs, and knowing you are doing the right thing to conserve energy and protect the planet are all good reasons to audit your commercial lease spaces now.