Energy management software is assuming new importance for real estate investment trusts as jurisdictions across the U.S. put new regulations known as Building Performance Standards, or BPS, into force as a means of reducing buildings’ greenhouse gas (GHG) emissions and energy use.
With looming BPS compliance deadlines and facing the specter of hefty fines or costly system upgrades, REITs and property managers are shouldering a new degree of financial risk, with no clear picture of compliance challenges yet to come. That uncertainty, coupled with a steady rise in utility rates, can profoundly impact both net asset value and investor confidence.
Energy Management Software Steps Up
Mitigating uncertainty to the greatest possible extent is fast emerging as a competitive advantage. As a result, REITs across the country are adopting energy management software that quantifies risk by tracking energy consumption and greenhouse gas emissions, forecasting utility cost impacts, monitoring BPS compliance status and communicating to investors. With this improved clarity, investors are recognizing the lower risk impacting assets.
What’s most useful to REIT managers in the current environment, according to Randy Moss, Yardi industry principal for energy, “is getting all energy consumption details into one system so you can look at a complete portfolio, whether it’s in one city or nationwide, and understand at the building level your current status toward compliance and steps you might need to take.”
See how Yardi Energy gives REITs the data visibility they need continuously, not just when the bill arrives.