Steven Rose, principal research economist at the Electric Power Research Institute, sat down for a video interview at Nareit’s REITwise: 2026 Educational Conference in Hollywood, Florida, March 24-26.
Rose highlighted a central paradox facing real estate owners: while some energy costs like solar, wind, and natural gas are trending downward, overall uncertainty is rising. Key risks include volatile fuel prices, shifting energy policies, supply chain and permitting constraints, and rapidly growing demand from data centers and AI.
Rose emphasized that “uncertainty is growing… and that’s something important to be thinking about as we’re trying to plan for the future.” He also pointed to decarbonization policies and unclear regulatory paths as major unknowns that could significantly impact long-term costs.
To manage these risks, he recommended treating investments in electrification, resilience, and on-site generation as risk management strategies. Scenario analysis is critical to identify robust strategies that perform well across multiple possible futures.
Looking ahead, Rose said he expects continued energy demand growth, ongoing efficiency improvements, declining technology costs, and increasingly unpredictable climate patterns. He advised REITs to focus on total energy expenditures—not just prices—while engaging utilities, planning contingencies, and educating stakeholders. “Don’t get too focused on prices alone… think about the overall cost of energy.”