X Facilities Energy Management Alexis Wong, Kiran Singh, Quan Luu, Sam Hein ITEC 200- ITR 2014
Dec 16, 2015
X
Facilities Energy ManagementAlexis Wong, Kiran Singh, Quan Luu, Sam Hein
ITEC 200- ITR 2014
Properties No. Of Properties Sq. Ft (M)Total Malls / Open-Air Outlet Centers Associated CentersCommunity CentersOffices3rd Party / Other
158833
32101417
92.772.41.04.92.70.8
10.9
CBL: A Leading Diversified Real Estate Investment Trust
The Bottom Line
CBL’s Investors require financial and environmental outperformance
What strategies should CBL consider to ensure that these goals are complementary?
What WegoWise DoesReads your utility bills: electricity, gas, water
Simple data visualization tools
Identifies usage spikes
Benchmarks against peers
Projects and measures savings
Log onto your WegoWise accountTrack your energy usage
Benchmarking
Data Analysis
Shows a typical water retrofit for multi-occupant building in WegoWise database
Low flow toilets were installed in 2009 after WegoWise identified a wasteful energy source
Transforming data to polar coordinates can illustrate how much excess water usage is now
eliminated
Flushing away excess water usage
WegoWise is Extremely Cost-Effective
WegoWise Changes the Economics of FEM Product MarketOnly 5% of the potential market reached by “total” approaches
Several barriers to adoption
2011 Empire State Building Retrofit (Johnson Controls)
38% Reduction in energy consumption
$13MM Upfront capital commitment
$4.2MM Annual energy savings
3.1 Year payback
This formula doesn’t work for a lot of firms
WegoWise and CBL: An Incremental ApproachNo hardware = No upfront capital commitment
Issue DiscoveryData leads to ROI Prioritization
Ongoing monitoring and benchmarkingWegoWise is cost-effective enough to monitor any FEM installations
Why should REITs like CBL pay attention to energy efficiency?
~ 1/3 of typical building operating budgets
NOI/NAV effects
Occupant comfort
20% of USA’s greenhouse gas emissions
Regulatory compliance
CSR goals
CBL’s Form 10-K
30% of energy in buildings is used inefficiently or unnecessarily
14%
10% Reduction in energy consumption
Pays $2 / square foot
200,000 Square foot property
Lets Talk Numbers
+ $40,000
+ $500,000
+ $231M
At 8% “cap” rate, this can mean an asset value boost of
CBL’s net asset value by
Able to save 500 million gallons per month
If the energy efficiency of commercial and industrial
buildings improve by 10%, the collected savings would be over $2 billion in 20 years
CBL’s CSR Program
Now Is the Time to Invest