Could energy efficiency cure the housing value blues?
Energy security isn’t vital just to keep our society functioning, but better energy efficiency could be one way to help the beleaguered real estate market bounce back, according to a company that’s just changed its name to reflect that philosophy.
“Our industry must help raise the value of America’s buildings,” says Kevin Surace, president and CEO of Serious Energy, which was previously named Serious Materials. “Our economic stability and growth depends on it.”
The company cites recent history to back its claim: commercial and residential real estate in the US alone has lost trillions of dollars of value. Since 2007, commercial property values dropped 40 percent. The average home value is down 27 percent or more.
So how could smarter energy help? Well, buildings in the US account for about 40 percent of the nation’s total energy consumption, at a cost of $400 billion a year. And the US Environmental Protection Agency estimates that 30 percent of that energy going into buildings is simply wasted.
This isn’t just a concern about heat lost through leaky windows or computers left on all night. More efficient buildings are also better for the people who use them.
Various studies have shown, for example, that quiet office spaces improve employee productivity, and upgrades to increase natural daylighting can lead to decreased absenteeism and higher productivity.
As Serious Energy puts it, “Energy efficiency increases the value of a building.”
The company chose the new name to reflect its suite of energy software services and advanced building products.
Serious Energy has developed a platform of products and services that combine real-time, connected building analytics and control with material science innovations. SeriousEnergy Manager, for example, is a cloud-based software system that monitors, optimizes, and controls building energy use through advanced algorithms. SeriousWindows and iWindow are both designed to significantly improve the building envelope, improving comfort and reducing heating and cooling. And its QuietRock offering is aimed at delivering soundproofing and improved acoustics, enabling buildings to increase density and productivity.
According to McGraw Hill, energy efficiency improvements can consistently command higher rental rates, offer faster letting, and secure greater occupancy, thereby increasing the overall value of the building. Serious Energy offers the Empire State Building as an example: after extensive energy efficiency improvements, including the upgrade of all 6,514 windows, the iconic building has attracted new corporate tenants such as LinkedIn, and rents have in many cases increased by $20 to $40 per square foot.
