By Jason Hartke

The returns on investment jump off the page like a 3D movie, ranging from 42% to a whopping 410%. They are the energy saving results from 10 pilot tenant space projects that are now serving as the basis for the recent launch of Urban Land Institute’s (ULI) new tenant energy efficiency focused effort.

ULI’s Tenant Energy Optimization Program, which officially launched at its annual meeting in October, advances a proven approach to boost energy efficiency measures in tenant space design and construction while also delivering strong financial returns.

“This new program fits squarely into ULI's long tradition of improving the performance of the built environment by documenting real-world results, and by making the business case for investing in sustainability,” said Patrick L. Phillips, global chief executive officer, ULI. “This program shows that doing the right thing for the planet can also generate great ROI.”

ULI’s program, which prescribes a 10-step process, is founded on deeper collaboration across tenants, building owners, project managers, architects, engineers, and other stakeholders, who, by working more closely together, can have a catalyzing role in driving the development of energy-efficient workplaces. We know that when these tenant spaces adopt energy efficiency best practices and technologies, they reap powerful energy savings rewards. Reed Smith, one of ULI’s notable pilot projects, saved 44 percent in energy and more than $1.1 million in electricity costs, clearly demonstrating that these business workplaces represent a big opportunity to save energy and significantly improve the bottom line. It’s one of the reasons that the Department of Energy (DOE) has also identified tenant spaces as a focus area to accelerate energy efficiency solutions.     

In April, DOE released an important report on the subject, Energy Efficiency in Separate Tenant Space – A Feasibility Study. The report found that tenant spaces, which face a unique set of structural and technical barriers to energy efficiency, must be a big part of the solution to creating higher performing, more energy-efficient commercial buildings. In fact, the report said, leased spaces represent about 50% of energy consumption in all commercial building energy use. In addition, if all tenant space were to achieve a 20% energy reduction, the country could save $5 billion and about the equivalent energy consumed by Mexico.

Further, as part of the Energy Efficiency Improvement Act of 2015, DOE and the Environmental Protection Agency (EPA) were tasked with taking action to facilitate and accelerate energy efficiency in tenant spaces. EPA is now in the midst of developing a recognition program for the design and construction of tenant spaces and have released draft criteria out for public comment. Moving forward, EPA is working toward a goal of creating an occupancy-based "tenant star" program that would serve as both as benchmark for these workplaces and also the basis for recognizing leadership.

Increasingly, with programs like ULI’s, and the tools that EPA is working to develop, tenant workplaces are much better positioned to take advantage of these energy-saving opportunities.