Leveraging Efficiency to Avoid Tenant Churn

There’s a strong correlation between energy efficiency and tenant retention. If you think about the benefits of energy efficiency from a non-financial perspective, it makes perfect sense that an efficient building would yield happy tenants – and ones that would be more eager to renew their leases. Efficient buildings are often more comfortable and attractive. If the tenants are paying their share of the utility bill, then there’s also a financial benefit that they would likely lose by moving to a less-efficient building.  And if they are performing work that would benefit from more effective lighting, greater thermal comfort, etc., then they would likely also enjoy non-utility-cost financial benefits (e.g., lower scrap rate, fewer clerical errors, or lower absenteeism).