Nareit’s REIT Report
How REITs Can Improve Energy Efficiency with Free Virtual Commissioning Resource
Why It Matters
Energy efficiency directly boosts a REIT’s bottom line while advancing climate goals, making free, data‑driven solutions like VCX especially valuable in a market where operating costs and ESG reporting are under intense scrutiny. As utilities expand these programs, REITs can quickly capture savings without capital outlays, freeing cash for other investments and helping meet emerging regulatory standards.
Key Takeaways
- •Utility‑funded virtual commissioning cuts building electricity use ~15%
- •Program provides free, no‑contract energy consulting to commercial REITs
- •Typical savings: $88k annually, $1.25M asset value boost
- •Requires >50,000 kWh yearly use and controllable HVAC/lighting
- •Service monitors smart‑meter data, verifies savings for years
Pulse Analysis
The REIT Report episode spotlights Power Takeoff’s utility‑funded virtual commissioning (VCX) program, a data‑driven service that delivers free energy consulting to commercial real‑estate owners. By analyzing 15‑minute interval smart‑meter data in‑house, Power Takeoff pinpoints abnormal usage patterns and offers remote, no‑contract recommendations. This model flips traditional data‑delivery approaches, turning raw meter data into actionable insights without any capital outlay for the building owner, making it especially attractive for REITs seeking scalable sustainability solutions.
VCX typically drives around a 15% reduction in electricity consumption, translating into tangible financial gains. Real‑world examples include a North Carolina office tower that saved $88,000 annually and boosted its asset value by $1.25 million—an increase calculated at a 7% cap rate. Additional benefits stem from reduced maintenance cycles and deferred equipment upgrades, often adding another $13,000 in cost avoidance. The program’s rigorous measurement‑and‑verification process ensures that savings persist, feeding directly into BPS compliance reporting and broader carbon‑emission reduction targets.
For REITs, eligibility is straightforward: commercial or industrial properties consuming over 50,000 kWh annually, equipped with adjustable thermostats, lighting controls, or building automation systems. The time commitment is minimal—typically two to four hours of virtual meetings—while the payoff can extend for a decade or more. By partnering with over 30 utilities nationwide, Power Takeoff acts as an extension of an REIT’s energy team, continuously surfacing new efficiency opportunities across portfolios. Interested owners should contact their utility or Power Takeoff directly to initiate a free virtual commissioning assessment and start capturing immediate NOI improvements.
Episode Description
In this special episode of the REIT Report, Bridget Bray, director of partnerships at Power TakeOff, joins Nareit’s Jessica Long, senior vice president of environmental stewardship and sustainability, to discuss how the company delivers utility-funded Virtual Commissioning (VCx) programs across the United States.
She shares how the firm works with commercial real estate owners to improve net operating income and increase asset value by identifying and rectifying energy waste through analysis of utility smart meter data. She explains how Virtual Commissioning is distinct from traditional retro-commissioning programs—it requires no on-site visits, no hardware installation, and no contracts with building owners. The service is free for building owners and is funded directly by utility partners.
Power TakeOff partners with nearly 30 utilities across the country to deliver utility-funded Virtual Commissioning (see map for details). Bray shares details on how Power TakeOff's team of experienced energy advisors analyzes smart meter data remotely to identify abnormalities in energy usage patterns and, through virtual consultations with property managers, facilities managers, or on-site engineers, provides personalized recommendations to optimize existing building systems and controls.
Comments
Want to join the conversation?
Loading comments...