September 14, 2009
The institutional market for energy efficiency retrofits in commercial buildings is booming, driven by strong activity in the federal building sector, and activity initiated in the next few years will continue through 2013 and beyond. However, according to a recent report from Pike Research, the largest potential for long term, sustained growth in building efficiency lies in the private commercial sector, comprising 70 billion square feet of space, where managers are motivated not only by the opportunity to reduce energy costs, but also by the lure of higher property values for green buildings.
“As the economy recovers, the commercial building sector’s activity mix will shift away from new construction and toward more renovations,” says managing director Clint Wheelock. “In addition to the direct benefits of reducing energy bills, high-performance buildings command premium rental and sales prices. In a struggling and fiercely competitive market, green buildings simply move faster relative to their more conventional counterparts.”
According to the report, commercial building retrofits range from less than $1 per square foot (SF) for a simple energy efficiency program to save 10% of energy costs, to $10-$30/SF to save 40% of energy costs and enhance occupant performance, to $40/SF for a major renovation. Payback periods, particularly for simple low-cost retrofits, can range between a few months and a few years.
Pike Research’s study, “Energy Efficiency Retrofits for Commercial and Public Buildings”, provides an in-depth examination of the market opportunities, drivers, barriers, and best practices within the commercial building sector. The report features detailed quantitative analysis of the addressable market for green retrofits, along with forecasts for market growth over the next five years. An Executive Summary of the report is available for free download on the firm’s website.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Renewable Energy, Clean Transportation, Clean Industry, Green Consumers, and Environmental Management sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.