The environmental reasons for commercial property owners/operators to improve energy efficiency have been well documented for years. But it is the financial benefits of being “green” that have encouraged real estate companies to be more energy conscious. Improving energy efficiency can lower operating costs, increase net operating income and FFO, and enhance shareholder value. If every home, business and organization in the U.S. followed the Environmental Protection Agency’s ENERGY STAR guidelines, the national energy bill would be cut by roughly $200 billion annually.

The EPA outlines five steps to increasing energy efficiency, and improving lighting systems is one of the first and easiest to implement. The feature “A Bright Idea” profiles how even the simplest improvements in lighting efficiency can pay big dividends in the bottom line—while at the same time helping to conserve energy.

“Power Play” looks at another way building owners are being energy conscious while also saving money. Distributed generation technologies allow building owners to supplement the power they receive from the local utility and in turn improve reliability, reduce the burden on the local grid and cut energy costs.

Noteworthy

In addition, we have made a few changes to the magazine to start the new year. The Capital Markets column will now provide insight and analysis straight from leading industry sources—starting this issue with Deutsche Banc Alex. Brown’s Jacques Brand. Keep an eye out for other new additions appearing in future issues.

Also, don’t forget to visit Portfolio’s award-winning on-line site accessible through www.nareit.com. There you will find a web-only feature on architectural trends. In “Form & Function,” we take a look at how developers and architects are working together to create more energy efficient buildings that meet changing tenant demands.

Matthew Bechard
Editor-in-Chief