Argemastic
By RJ Mastic
There is a collective interest in upgrading Denver’s multifamily housing infrastructure to make it more sustainable. Investors and property owners are increasingly focusing on sustainable solutions, not only to reduce environmental impacts but also to meet the growing demand for eco-friendly living.
Owners may also be motivated by mandates included in the Energize Denver ordinance, which is designed to move the city to near net zero greenhouse gas emissions by 2040. Add to that the rising cost of utilities, and it’s clear that eco-friendly upgrades can positively impact the bottom line. For property owners, committing to a sustainability program and moving toward implementation quickly can have a significant impact on cost savings.
Through 34 projects across the city, our partners have implemented sustainability programs and saved more than $3.8 million in water and energy costs. Bringing in experts to advance a portfolio along a more sustainable path will help meet the Energize Denver goals and other conservation goals most efficiently. Here are some tips to get you started:
1. Consult experts who know where to save.
Streamline your conservation efforts with a clear process to see opportunities in both financial savings and conservation and identify the highest potential for impact. Working with experts can help ensure your conservation program addresses the right issues, or combines issues, and protects your investment. Whether it’s looking at ways to access renewable energy, electrify HVAC systems, replace toilets and light fixtures with high-efficiency options, or improve irrigation systems, experts will customize a program to meet your goals, building expertise in design and implementation. by doing .
2. Incorporate ESG measures into your physical due diligence process.
Most capital is available to owners around a transaction to make sustainable upgrades. As owners evaluate the market and look for opportunities to expand their portfolios, older, less efficient properties typically have more potential for cost savings through sustainability upgrades. Incorporating ESG factors into your physical due diligence will make implementation easier. You can also underwrite savings potential on your transaction, which shortens the time it takes you to see returns.
3. Create a proper and effective road map for the goal.
Performance returns are another important reason to consult with experts when establishing a sustainability program. It is one thing to have a report possible The savings that environmentally friendly upgrades can provide, but most owners will find more value in the work that helps realize those savings, comes only in the form of an action plan. Outside experts who work day and night on ESG variables will provide a useful road map, not only to meet conservation targets but also to assess savings opportunities that may not be immediately apparent without specific expertise in sustainability. This step gets you closer to those savings and can help avoid noncompliance or unnecessary fees for work that doesn’t directly align with conservation goals.
4. Reinvest savings from lower utility costs into other sustainable projects.
Owning a resource-efficient property means lower utility bills and higher net operating income. This creates savings that you can reinvest in other sustainability projects and building upgrades, all of which help with tenant loyalty and retention. Landlords can use this information in marketing efforts to attract and retain tenants — demonstrating the measurable impact of conversational efforts in multifamily housing, reinforcing how landlords are helping to build more sustainable communities.
In recent years there has been a push to move Denver down a more sustainable path Property owners can play an important role in this goal by committing to conservation programs and focusing on social and environmental impacts. Those who do will see a significant return on their investment, and have the peace of mind knowing they are contributing to Denver’s long-term sustainability goals.
RJ Mastic is the Senior Director of Business Development at EcoSystems, a Certified B Corporation that helps real estate owners invest in and scale climate-friendly business practices that conserve water and energy. With over 15 years of experience, RJ has led the completion of more than 1,000 projects across the United States Based in Denver, RJ focuses on efforts to grow the portfolio and generate exponential savings.