Green Real Estate/Energy Efficiency

Real Estate Webinar Series

Who are wePartner Energy is a nationwide provider of

energy efficiency consulting servicesOver the past 12 months Partner Energy has

executed benchmarking studies, audits, and energy modeling on over 275 properties and 13.5 million SF in 32 states

Sister Company to Partner Engineering and Science, a nationwide provider of environmental and building due diligence services. www.partneresi.com

www.ptrenergy.com | 888-826-1216

Who are weOur staff of Energy Engineers have over 50

years of experience and hold various designations including:Professional Engineer (“PE”) Leadership in Energy and Environmental

Design Accredited Professional (“LEED AP”)Certified Energy Managers (“CEM”)Building Performance Institute

Certified(“BPI”)Home Energy Rating System Analyst (“HERS”)

www.ptrenergy.com | 888-826-1216

Mission Statement

Partner Energy works with building owners to identify accretive energy efficiency projects

that meet their sustainability goals and satisfy their capital investment return

criteria.

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy Disclosure

LawsApr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real Estate

Mar 9th Commercial Real Estate Energy Disclosure Laws

Apr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy Disclosure

LawsApr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy

Disclosure LawsApr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy Disclosure

LawsApr 6th Commercial Real Estate Energy

AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy Disclosure

LawsApr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & Tracking Jun 1st Financing Energy Efficient & Renewable Energy

Projects

www.ptrenergy.com | 888-826-1216

Green Real Estate/Energy Efficiency Webinar Series

Jan 12th The Importance of “Green Real Estate” in Attracting Investors and Tenants

Feb 9th Energy Benchmarking in Commercial Real EstateMar 9th Commercial Real Estate Energy Disclosure

LawsApr 6th Commercial Real Estate Energy AuditsMay 4th Implementation, Verification, & TrackingJun 1st Financing Energy Efficient & Renewable

Energy Projects

www.ptrenergy.com | 888-826-1216

Energy Reduction “Plan”Step 1 •Energy Benchmarking

Step 2 •Energy Audit

Step 3 •Energy Model

Step 4 •Implementation

Step 5 •Performance Tracking

Step 6 •Repeat (5 – 10 yr cycles)

What is Energy BenchmarkingEnergy Benchmarking allows building owners

to:Quantify a building’s energy consumptionCompare a building’s energy performance to

other similar buildingsTrack the performance of implemented

projects

www.ptrenergy.com | 888-826-1216

Jan Feb Mar AprMay Jun Jul Aug Sep Oct NovDec200,000

400,000

600,000

800,000

1,000,000

Total Consumption (kBTU)Baseline

Current

Building A

Building B

Building C

Building D

Building E

Building F

$-

$1.00

$2.00

$3.00

$4.00

Energy Cost ($/SF)

Energy BenchmarkingKey Building Energy Performance

Metrics:Energy Star Performance Rating (1-100)Energy Intensity (kBtu/SF/yr)Cost ($/SF)GHG Emissions (CO2e/yr)

www.ptrenergy.com | 888-826-1216

Building A

Building B

Building C

Building D

Building E

Building F

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Energy Cost ($/SF)

Quantifying and ComparingKey Energy Performance Metrics: Historical

Utility DataElectricity – kWhGas – ThermsTotal Energy Consumption – kBtuTotal Energy Cost - $Greenhouse Gas Emissions – CO2e

Intensity on a per SF Basis – kBtu/SF, $/SF, CO2/SFAllows comparison of buildings of different

sizes www.ptrenergy.com | 888-826-1216

Energy Performance FactorsLocation and climateBuilding SizeHours of operationBuilding Loads

Number of occupants

ComputersData centers

Usage% Conditioned

SpaceParkingRetail, office,

warehouse

www.ptrenergy.com | 888-826-1216

Energy Star Portfolio ManagerEPA and DOE developed Cost-Effective

Energy Benchmarking ToolAdjustments for building operating

characteristics Building Size Location Building Loads – People/PCs/Operating Hours Usage

Compares to national averages for building type - Commercial Building Energy Consumption Survey (CBECS)

Ranking 1 – 100www.ptrenergy.com | 888-826-1216

What does the score mean

www.ptrenergy.com | 888-826-1216

Energy Star LabelEnergy Performance Rating of 75 or greaterMeets environmental factors

Adequate illuminationAcceptable thermal environmental conditionsVentilation for Acceptable Indoor Air Quality

Verified by Professional Engineer

www.ptrenergy.com | 888-826-1216

Why Require Energy Benchmarking for Real EstateUS Buildings account for:

Nearly 40% of US primary energy useNearly 40% of greenhouse gas emissionsNearly 70% of US electricity consumption

Building energy performance as additional data point for purchase decision

Automobile MPG Rating

www.ptrenergy.com | 888-826-1216

Cycle of ImprovementRatings for all

buildings

Ratings disclosed to market

Market compares building

performance

Market rewards energy efficient

properties

Owners improve efficiency to help competitiveness

Efficiency of building stock continuously

improves

www.ptrenergy.com | 888-826-1216Source: Institute for Market Transformation

ResistancePrivacy - disclosure of utility bills by utility

providersDevaluation of real estate with low scoresDelayed transaction closingCauses financial hardship for real estate

ownersInaccurate/incomplete Energy Star input

dataEnergy Star score not available for all asset

types www.ptrenergy.com | 888-826-1216

Who Uses Benchmarking Data?Buyers/Sellers

Leesees

Lenders

Asset/Portfolio Managers

www.ptrenergy.com | 888-826-1216

Buyers/Lessees/LendersPoint of negotiation

Low score = reduced purchase price/lease rateLiability due to inaccurate/incorrect scores

Opportunistic/Value-Add buyers looking for low scores

Core buyers looking for higher scoresPotentially excluded from market segment

looking for Energy Star Labeled BuildingsLow Scores - Perceived higher risk asset

www.ptrenergy.com | 888-826-1216

Buying Decision

www.ptrenergy.com | 888-826-1216

Property A

• Class A office building• Purchase Price: $200/SF• Amenities: Close to major

freeways, public transportation, and retail

• Utility Cost: $3.00/SF• Energy Consumption: 150

kBtu/SF

Comparison

Property B

• Class A office building• Purchase Price: $200/SF• Amenities: Close to major

freeways, public transportation, and retail

• Utility Cost: $2.00/SF• Energy Consumption: 95

kBtu/SF

Distinguishes Between Markets

www.ptrenergy.com | 888-826-1216

Property A

• Utility Cost: $2.00/SF• Energy Consumption: 100

kBtu/SF• Size: 40,000• Location: Florida• Number of occupants: 200• Hours of operation: 80

Comparison

Property B

• Utility Cost: $2.00/SF• Energy Consumption: 100

kBtu/SF• Size: 120,000 SF• Location: New York• Number of occupants: 400• Hours of 0peration: 120

Portfolio/Asset ManagementCompare assets

across portfolio

Identify lowest performing assets

Identify highest cost assets

www.ptrenergy.com | 888-826-1216

ASSET COMPARISION CHARTS

JLL Fresh and EasyWest CoastRetail

0 10 20 30 40 50 60 70 80 90 100

A001

A002

A003

A004

A005

A006

A007

A008

Energy StarInvestInvest/AdjustAdjustMaintain

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00

A001

A002

A003

A004

A005

A006

A007

A008

Intensity - $/SF

0.00 20.00 40.00 60.00 80.00 100.00 120.00 140.00 160.00

A001

A002

A003

A004

A005

A006

A007

A008

Intensity - kBtu/SF

0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20

A001

A002

A003

A004

A005

A006

A007

A008

$/kWh

0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00

A001

A002

A003

A004

A005

A006

A007

A008

$/therm

0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00

A001

A002

A003

A004

A005

A006

A007

A008

CO2/SF

Mission Statement

Partner Energy works with building owners to identify accretive energy efficiency projects

that meet their sustainability goals and satisfy their capital investment return

criteria.

www.ptrenergy.com | 888-826-1216

Contact Information

Partner Energy, Inc.sales@ptrenergy.com

888-826-1216www.ptrenergy.com

www.ptrenergy.com | 888-826-1216