The commercial property market is as competitive as ever, with businesses searching for the most cost-effective solutions. However, many environmentally conscious potential tenants are looking for more than just a great price per square foot on their next office or warehouse space. They also want to know that the facility includes sustainable features that will help keep operating costs reasonable while protecting the environment. Solar power is one of the top features that gets tenants excited about commercial property and ready to sign a lease quickly. In addition to this energy-efficient feature, renters report that they look for other sustainable features like ample ventilation and access to outside air, natural light sources, and an overall well-maintained property that will meet their needs and offer a healthy workplace for their staff.
Delivering What Tenants Want Most
Commercial tenants are looking for the best of both worlds. They want reasonable costs, from the rental price of the space to its operating costs. However, they also want a space that functions well, is a healthy space for their staff, and is safe for the environment. This can be a tall order for any property to deliver. However, solar power ticks many of these boxes by keeping operating costs as low as possible. According to reports from the Institute for Market Transformation and the Green Lease Leaders, energy consumption can be decreased by 11% to 22% when sustainable practices are implemented at the property. These steps translate to a decline in utility costs that roughly save about fifty cents per square foot on average utility expenses. In addition, tenants renting sustainable properties were willing to pay 3% to 8% more to lease these locations, providing a significant financial boost to property owners.
Getting the Most Out of Your Commercial Property
All commercial property owners know that keeping the spaces filled with paying and satisfied tenants is critical. Empty commercial properties are nothing but a drain on your bottom line. However, when you are leasing a sustainable property, you have an edge that more than half of all Gen Z and millennials are quick to recognize. When asked, 55% and 54% of these groups respectively reported that they knew leasing a sustainable property allowed them to secure and retain the the top talent in their industry, making it vital to their success.
The Bottom Line
Keeping your commercial property leased with a happy tenant, demanding a top lease price, and remaining popular and in favor within the leasing community are all vital factors, but the real number that tells it all is the value of your commercial property. That is the number that drives all others and is why you will continue to own and lease the property. In studies, the Institute for Market Transformation determined that sustainable properties garnered 13% to 36% higher sale numbers than those without these innovative and useful features.
To learn more about increasing the value and desirability of your commercial property, please reach out to the team at Solar Group. Our experts are happy to help you understand how to transition your current commercial properties from run-of-the-mill options to the most desirable and sustainable in the market to increase their property value, rental revenue, and occupancy rates to increase your bottom line.
