Converting from fluorescent to LED fixtures are becoming an increasingly popular approach for those in the real estate industry. There are many key reasons behind this decision but we will highlight just a few.
Efficiency – Less Energy, Lower Life Cycle Maintenance Cost and Higher Lumen Output
Public Representation – Higher GREEN Walk Score
Higher CRI Output – Color Rendering Index
Sustainability – Higher Overall Hour Performance
Key Asset Cost Discussion Points
Industry professionals weigh out many line items when reviewing an asset. The initial cost is of course one of those items. In the same conversation the cost of operating that asset is just as crucial. That’s where an awareness of available options is crucial. Questions that will come up in an operational and efficiency discussion in the context of this post will be:
What are the conversion costs of moving from a fluorescent fixture to a LED fixture?
What time frame will it take for an asset to see the return on investment in action?
What kind of rebates are available?
Can any warranties be passed on if the asset is transferred and/or purchased by another party?
These are all important questions that Southern Energy Solutions addresses and answers with professional positive documentation. Let’s take a look at the recent Southern Energy Solutions project at a Tribridge community in downtown Atlanta. The parking structure being referenced is used by the resident population and the commercial anchor CVS store.
Once the full property assessment was completed by Southern Energy Solutions it was discussed with the stakeholders of Tribridge which included Asset Management, Director of Maintenance, Regional Maintenance, Regional Property Manager and the Property Management Team. It was decided to split the implementation of the project in four (4) phases.
The first two (2) phases is what we will discuss in this case study.
Phase I – Coach Light LED Conversion with Dark Sky compliance, First Floor Parking Structure and Top Deck Shoe Box retrofit
Phase II – Remaining Parking Structure, CVS parking area and the four (4) Recycle areas /Trash rooms used by residents within the structure
Let’s take a look at some numbers.
Energy Consumption Statistics
Old Energy Consumption Output = 21384 KWH
New Led Conversion Output = 8124 KWH
Overall anticipated Consumption savings = 58%
Rebate Potential – 15.3% cost of project -Currently under review for approval with utility provider
The Bottom Line
For industry professionals those kinds of cost reductions are significant. This type of documentation and much more are as valuable as the asset being discussed. All parties are affected. The customers notice the increased lighting. The asset managers see operational costs go down and value increase. Lenders can justify funds based on the overall financial picture of the asset. The property manager sees maintenance performance improve as the team has more availability to perform preventative maintenance and regular maintenance to the resident population.
So everybody wins. The old perception of the cost of green initiatives continues to be stamped out. With proper planning and documentation, industry professionals are in a much better place to make informed decisions. Contact Southern Energy Solutions for a comprehensive assessment of your project today.
Because of these results Tribridge has requested that Southern Energy Solutions expand further within their portfolio of properties. As of this printing they have completed a total of Three (3) additional lighting projects and have a total of 9 others waiting for implementation approval in addition to the other two phases at the downtown Atlanta project.
TriBridge Residential is a full-service multi-family investment, management, and development company based in Atlanta, GA, with approximately 10,000 units and $1.3 billion in assets under management as of December 31, 2015. With 60 corporate professionals and over 215 on-site staff, the firm focuses on markets in the Southeast and provides a vertically integrated platform with a 25+ year track record through its subsidiaries and affiliates.
About Southern Energy Solutions
Why Come To Us? Our focus is sustainability identification and implementation. Our clients recognize that we approach and recommend solutions for facility improvements (lighting, roofing, MEP, Elevators, Space Planning, PV and Wind) individually and specific to the asset regardless of size, type or the segment of real estate it serves. Be sure to check out our overall Tactical Approach and Business Model.