Utilizing Commercial Real Estate Owner and Investor Data to Analyze the Financial Performance of Energy Efficient, High-Performance Office Buildings

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Evidence has shown that owning and operating energy-efficient, high-performance properties is a sound investment strategy that results in multiple financial benefits, including lower utility bills, higher rents, improved occupancy, and greater net operating income (NOI). To overcome difficulties in isolating moderating factors and identifying specific drivers behind sustainability-related improvements in financial performance and value to investors, DOE commissioned this pilot study; designed to test the logistical and empirical procedures required to establish a Commercial Real Estate Data Aggregation and Trends Analysis lab (Data Lab) and contribute to the existing body of evidence in this field. This analysis was conducted using data from an institutional owner of commercial real estate, and the results indicate that energy-efficient, high-performance properties demonstrate improved financial performance and exhibit a statistically significant increase in NOI and decrease in operating expenses when compared to typical properties.