03. Class A Office Building - Philadelphia, PA
Taking Advantage of a down Energy Market
Savings: 28.3% on average annually or $980,000 over 5 years
Value Created: $2,000,000
*Based on a 7% Market Cap Rate
The Story: In taking over the property we had learned that the electricity for the asset was on the floating market rate. In the State of Pennsylvania, consumers have the opportunity to shop their electricity consumption. Typically with deregulation, the shopped rate is lower than the given market rate. We were able to bid the electric usage and lock in a low rate for a period of 36 months, removing volatility in this variable expense. By taking advantage of the deregulation market, the new contract was able to secure long-term savings for the property.