Although the institutional market for energy-efficiency retrofits is booming, higher property values should drive even greater sustained growth in green retrofits for the private commercial sector, new market research says.
Stimulus-driven strong activity in the federal building sector will continue to fuel green retrofit activity in the institutional market through 2013 and beyond, according to a new report from Pike Research, a Colorado-based market research and consulting firm that provides in-depth analysis of global clean technology markets.
But the nation’s 70 billion square feet of private commercial space represents a $400 billion opportunity, the firm estimates. Private-sector building managers are motivated not only by energy savings, but 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 Pike Research 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 percent of energy costs, to $10-$30/SF to save 40 percent 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 at http://www.pikeresearch.com/research.