Solar Panels: A Competitive Advantage for CRE?
Across all CRE sectors, solar panels are growing in popularity. Property owners and developers are installing these eco-friendly additions to retail spaces, warehouses, hotels, apartment complexes, and other commercial assets.
Solar panels are currently a hot topic in CRE since landlords are striving to become more energy efficient. These panels are powerful tools used to reduce a building’s carbon footprint, lower the cost of energy bills, and minimize wasted resources.
However, aside from the obvious environmental perks, CRE professionals have other motives in mind. The large-scale implementation of solar panels is being driven by a few pertinent business-centric advantages, and it’s catching the attention of the country’s commercial industry.
Let’s look at how solar panels are providing a competitive advantage for CRE professionals across the US.
Attracting Contemporary Tenants
It’s true that all CRE sectors are highly competitive, but the office market is particularly intense. It’s a constant battle between opponents, where each party is always trying to gain the advantage.
In today’s increasingly conscientious world, solar panels can play a huge role in attracting tenants. This eco-friendly feature now stands as a basic requirement for the large demographic of environmentally-savvy tenants. By utilizing solar power, owners of office assets are able to distinctly stand out from the crowd and fill vacancies.
Landing Investors for the Long Run
Moving beyond tenants, there’s another group who’s being wooed by solar energy — investors. When it comes to commercial properties, investors are looking for the smartest deals out there. Longevity and profitability are key elements of a promising asset, and deep-pocketed investors are not shy to make demands.
It’s a common trend for investors to zero-in on sustainability when looking at a deal’s long-term implications. Developers looking to attract interested investors are adopting the mission of sustainability to improve their standings and make their project more attractive.
Qualifying for Diverse Financing Options
Getting a loan is not always easy, and CRE professionals know how important it is to take proactive steps towards financing. There are many loan options that require a property to have environmentally-friendly components, and solar panels are a popular favorite. In many cases, these loans can nullify the costs of installation and even continue to support the asset for years to come. This is a great deal, and CRE is making the most out of it.
Gaining the Government’s Favor
Multifamily developers looking for capital can greatly benefit from striving towards sustainability. In order to gain an advantage in the market, the multifamily and affordable housing sectors can install solar panels to receive monetary support. This is a result of their commitment to bettering the environment by designing buildings that positively impact local communities.
In situations like this, the benefits are multifaceted. Not only does the solar-powered property qualify for monetary advantages, but they can also advertise as eco-friendly to attract tenants.
From office to multifamily, solar panels are helping CRE professionals gain the upper hand. Whether it’s outshining the competition or qualifying for specialized financing options, solar energy is proving to be an unignorable element in the industry. To learn more about CRE’s latest trends, check out our blog.