Energy efficient building is no good for the business model of a real estate investor. Think about it: as an investor or owner you realize a sustainable building. Which means you invest heavily in equipment and materials that make the building energy efficient. That is very profitable for the environment and the user, for he will benefit of a substantially lower energy bill. But as an investor you will see little extra return on that investment. Charging a higher rent or enforcing it is often not possible in the Netherlands. This situation ensures that investors and owners are hardly willing to invest in energy efficient building. While I see great opportunities and a solution to this dilemma.
For whom is energy efficient building a problem?
Investing is getting a maximum return on capital but that is not working out for investors. And so there is no incentive for energy efficient building. Initially this is a problem for society and for the user, until the buildings are no longer lettablebecause of the high energy bills. Only then does it become a problem for the owner. Especially in the big cities there are countless homes whose tenants go towards bankruptcy or move out due to the energy bill, because the heat literally goes through the roof or window. That the rent is low makes no difference. What I want tot do is save energy, not let it evaporate, and make energy efficient building profitable.
How we DON’T solve this problem
There are those who feel that the owner should also pay for the energy bill. Afterall it is his building. But the owner has no say over approximately half of the energy consumption, because it is determined by the personal habits of the user. The needs for warmth, water and light vary by person, by time of day, time of life, type of work, by culture and so on. And for all those different habits and needs the owner offers a standard solution that users have no say over. In the United States, for example, it is standard for the office rental price to include energy consumption. What is the result? Skyrocketing energy bills because the user doesn’t really care. In his turn the owner ensures that the user has no room to manouvre. This is not in the interest of the user. So letting the owner pay for the energy bill, solves nothing.
How DO we solve this problem
I turn it around. My golden tip: give the user the freedom to invest in energy efficient construction and systems and give him the return on this investment. He no longer needs to settle for standard solutions that do not meet his needs. The user gets control over its own indoor climate and energy consumption. The owner provides a durable shell that requires a long-term investment, such as heat and cold storage, windmills and solar collectors on the roof. Thus we untangle the base building from the fit-out and with the financial interests of the investor or owner and of the user.
Your sustainable behavior is rewarded and your unsustainable behavior costs money. Social, economic and ecological sustainability meet again. And sustainable building supports the business model of the investor. So you can hold your own ground in the building process you are involved in, in the transformation of existing buildings and new constructions.
Take the next step and share your experiences
Do you want to take a next step? Come to the FREE* Masterclass. We will work with practical tools to instantly implement the actions of my ebook in your organizational, fiscal or financial projects and organization.
Join the conversation
Do you know how to build that new way and what you need? How do you work on this to avoid these problems? Share it in the comments below.
To your health and wellbeing,
Remko Zuidema
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This post is also available in: Nederlands
